No-closing-cost mortgage
Definition
A no-closing-cost mortgage is a marketed loan or refinance that still involves origination costs. Official consumer material explains that those costs are commonly offset by a higher interest rate or by adding the costs to the loan amount. It is not a loan with no costs.
In plain English
Advertisements sometimes say no cost or no closing cost. The fees do not vanish. The lender is usually recovering them another way. Lender credits, discount points, and origination fees are the ordinary closing-cost pieces. This page is the marketing phrase, not a pricing grid.
Technical definition
CFPB's official Ask CFPB heading on no-cost or no-closing-cost loans is PRIMARY.
Why it matters
Shoppers hear no closing cost and skip comparing Loan Estimates. The official heading says the costs are still there.
Related terms
Sources reviewed
Is there such a thing as a no-cost or no-closing-cost loan or refinancing?
ObservedSeptember 7, 2026
Open Is there such a thing as a no-cost or no-closing-cost loan or refinancing? ↗
Important note
Advertised no-closing-cost loans still involve origination costs. Those costs are commonly offset by a lender credit tied to a higher rate or added to the loan amount. Specific pricing claims are not made.