Well, althought it is no-cost loan, it is still YOU pay the closing cost. e.g, if you pay closing cost, you may get 4.75% rate. You give up this 0.375% rate to trade closing cost. It is the same thing. However, without loan broker (or mortgage market) help, you can't new rate. So this is win-win situation.
Yes, "my loan amount should be equal to my current loan balance." However, this $820 paid out some of closing cost.
