How to refinance without closing cost

[Mo Muigai]

Newbie here. We just purchased another home and are renting our first home from 2/1/20🥳. our first home has some cash that we'd like to pull out and obtain a rental property leaving it at 20% to avoid PMI. How can we refinance without incurring closing cost or other expenses that make it not worthwhile in the long run?

[Jerry Padilla]

@Mo Muigai

There are going to be closing costs at every bank. 
The only way to avoid closing costs, is to get a HELOC versus a refinance. A HELOC is most likely going to have higher interest rates and the rate will be adjustable. So in the long run, you may be paying much more in interest than you would have in closing costs on a refinance while rates are so low.