If you've built up some equity in your home, when you refinance, you may be able to "cash out" some of that equity to pay off credit cards or other revolving debt, improve your home, help pay for college, or anything else you can think of. The same is true of refinancing costs: If you have enough equity in your home, you may be able to roll all of your closing costs into the loan.

Some of the "cash needed to close" as it's sometimes called includes settlement costs and fees, prepaid interest, escrow reserves, state or local government charges, or even extra funds needed to pay off your existing mortgage. Some or all of those costs can sometimes be financed as part of your new mortgage loan. 

Even if you are buying a house with no money down it is often possible to have some, if not all of your closing cost covered if your Realtor know how to structure the contract.  Most lenders allow for the seller to pay somewhere betIen 3-6% of the purchase price in closing costs.  All you have to do is negotiate a "seller concession" rather then a loIr purchase price.

If you've had your current mortgage for a few years, chances are you've built up enough equity to finance cash needed to close and still have a smaller loan balance than your original -- and a balance that will qualify you for a favorable mortgage program tied to your loan-to-value ratio.  Some people find that it's advantageous to pay the cash needed at closing from checking, savings or money market accounts or from other assets. This is because the less you borrow on the new refinanced loan, the loIr your monthly payment will be. But I'll work with you to see if there is an advantageous refinancing program for you based on your ability and willingness to pay closing costs and other fees and the amount you wish to borrow.

Everyone's situation is different, and I will help you to determine what best meets your goals and needs.