How rolling in closing costs works
Instead of paying fees at closing, you add them to your new loan. Your new loan amount becomes your current balance plus the closing costs you're financing. You walk away with no out-of-pocket fees, but you repay them, with interest, as part of your monthly payment.
What it can cost you
Hypothetical example. APR may differ; example only. Rates change daily. If you roll $6,000 into a 30-year fixed loan at 6.875%, the added principal and interest is about $39 a month. Over 30 years, you'd pay about $8,190 in interest on those fees, on top of the $6,000 itself.
Example details: $6,000 30-year fixed at 6.875% (6.903% APR): 360 monthly payments of $39.42. Principal and interest only; taxes and insurance not included, so the actual payment will be higher. Unless noted, APR assumes ZERO Closing Costs, no discount points and 15 days of prepaid interest. Hypothetical example prepared November 4, 2026, not a current CapCenter rate offer; subject to credit approval.
Hypothetical example. APR may differ; example only. Rates change daily. Adding $5,000 of closing costs to a $300,000 loan at 6.75% raises the principal and interest payment by about $32 a month. Over 30 years, that $5,000 costs about $11,675 in total payments, including about $6,675 in interest.
Example details: $300,000 30-year fixed at 6.750% (6.778% APR): 360 monthly payments of $1,945.79; $305,000 30-year fixed at 6.750% (6.778% APR): 360 monthly payments of $1,978.22. Principal and interest only; taxes and insurance not included, so the actual payment will be higher. Unless noted, APR assumes ZERO Closing Costs, no discount points and 15 days of prepaid interest. Hypothetical example prepared November 4, 2026, not a current CapCenter rate offer; subject to credit approval.
Other trade-offs
- On a conventional loan, a higher balance can leave you with less than 20% equity, which may mean mortgage insurance
- Your monthly payment goes up slightly
- You build equity a little more slowly
- You'd have less equity if you sell soon
- Some programs limit how much can be rolled in
When it can still make sense
Rolling costs in can still be a sound choice. If you're short on cash and the new rate is meaningfully lower, the monthly savings can outweigh the extra interest. It also helps to look at how long you'll keep the loan. The sooner you sell or refinance again, the less interest you pay on the rolled-in fees.
The ZERO Closing Costs alternative
With CapCenter's ZERO Closing Costs, CapCenter pays or waives the lender and covered third-party fees on your refinance, such as origination, title and appraisal when required (see Offer details). There's no fee balance to roll in and no break-even period on fees to wait out.
Prepaid interest and escrow deposits aren't covered, since they're your own money for future bills. Depending on your equity and program, those may sometimes be included in the loan amount. Your loan consultant can show you both options.
