Refinance mortgage with no fees, but how is the lender making money?

Question by A.S: Refinance mortgage with no fees, but how is the lender making money?
My lender is offering me a lower interest rate and no lender fees. I know that if I go for this lower rate, my mortgage will reset back to 30 years. I am not keen about extending the life of the loan.
I don’t understand how the lender is making money from this refinance.
What is the catch, what is my advantage except that my monthly payment will be lower?

Best answer:

Answer by Yirmiyahu
Servicing fees
Underwriting fees
Other “garbage” fees

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