If a company claims they can do a refinance for no closing costs, without giving you an option including those costs, they aren't telling the whole story.
Perhaps the mortgage company can waive their own fees, but there are several third parties that must be paid for your closing. The appraiser, the title company, the credit-reporting agency and the government have to be paid on every real estate transaction. The reality of the 'no closing cost' refinance is that in order to pay these charges the mortgage company is charging you a higher rate.
I believe any time you are looking to refinance you should be given all the options from your loan officer. Of course, it can be convenient and cost-effective to do a no closing cost refinance, but maybe it would make more sense to pay the normal closing costs and receive the lowest rate possible! I believe both options should be on the table.
One thing to be careful of is a loan officer still charging the closing costs but rolling them into the loan without telling you. Believe it or not, I've heard of closings where the buyer was shocked to discover that their 'no closing cost' loan was just 'no closing costs out of pocket'. It is fairly common to pay closing costs out of your equity, but that should, once again, be your choice.
