refi

[Danny Shore]

http://loanmodificationfoundation.com/2009/01/differences-between-refinancing-and-loan-modification/

in the "article" it says "Homeowners don’t have to pay the closing costs upfront because they just add them to the loan amount but [u] and it increases the overall interest you pay to the bank over time."

If the buyer capitalizes the closing costs, how exactly is he extending the loan term? I understand that a higher debt balance would lead to a higher effective interest rate but i do not understand how the loan term would change (unless the buyer opts for the same monthly payments before and after the capitalization of the closing costs)