Usually, the fees associated with refinancing your mortgage are rolled into the final loan amount. Its not that you dont have to pay the fees, its just that they are taken out of the equity in your home. You also have the option to use a 0 fee loan, but your interest rate will be increased to recapture the costs in the form of interest payments from you over the life of the loan.

Every broker has different requirements as far as what is required to be paid, and when. For example, some will require that you pay for the appraisal at the time it is completed while others will allow you to pay it out of the final closing proceeds.

If there is not enough equity in your home to cover all of the fees, you can still reap the benefits of refinancing, but you will be bringing money to the closing.

Check with your Mortgage Broker to determine which method, rolling your fees into the loan or paying for them yourself, will work best for your financial situation.

Financing fees and/or closing costs into your loan is usually the better decision that to pull money out of your pocket to pay for the closing costs. Paying the closing costs and closing fees out of your pocket will provide you with a tiny bit more equity in your home as opposed to rolling the fees back into your mortgage. However, that equity or money available through the equity of your home will never be as easily accessible for emergencies or other items that may come up in your life. A good mortgage professional will be able to help you decide what should be best for your situation.