Refinance closing costs
What each fee is, what it typically runs, and which ones you can push back on. Enter your loan size for a ballpark.
| Cost | Typical range | Can you shop it? |
|---|---|---|
| Origination / underwriting fee The lender's charge for making the loan. Page 2, section A of the Loan Estimate. | $1,500 – $3,000 | Negotiable |
| Discount points (optional) Prepaid interest that buys a lower rate. Skip them if you won't keep the loan long. | $0 – $6,000 | Your choice |
| Appraisal Sometimes waived on refinances with plenty of equity. | $400 – $800 | Lender orders |
| Credit report & flood certification Small third-party charges. | $50 – $100 | Fixed |
| Title search & lender's title insurance Ask for a reissue rate if your owner's policy is recent. | $900 – $1,800 | Shoppable |
| Settlement / escrow fee Paid to the company running the closing. | $400 – $1,000 | Shoppable |
| Recording fees & transfer taxes Varies widely by state and county; some states charge mortgage taxes. | $100 – $1,500 | Set by government |
| Estimated total | $3,350 – $14,200 |
Ranges are broad industry ballparks, not quotes. Your lender's Loan Estimate is binding within legal tolerances.
Reading the Loan Estimate
Every US mortgage lender must give you a three-page Loan Estimate within three business days of applying (a rule from the CFPB's TILA-RESPA integrated disclosures). Page 2 has the costs, grouped as:
- A. Origination charges: the lender's own fees and any points.
- B. Services you cannot shop for: appraisal, credit report, flood check.
- C. Services you can shop for: title and settlement.
- E. Taxes and government fees: recording and transfer taxes.
- F–G. Prepaids and escrow: not true costs of refinancing; leave them out of break-even.
Add A + B + C + E and put that total into the break-even calculator or the full mortgage refinance calculator.
Four ways to cut them
- Get Loan Estimates from at least three lenders on the same day and compare section A.
- Ask your current title insurer for a reissue rate.
- Ask whether an appraisal waiver is available.
- Decline points unless the points calculator shows they pay off within your horizon.
Questions people ask
How much are closing costs on a refinance?
Freddie Mac puts typical refinance closing costs at about 2% to 6% of the loan amount. The table above estimates the main items for your loan size; your Loan Estimate gives the lender's actual figures.
What is a no-closing-cost refinance?
The lender covers the costs in exchange for a higher interest rate (a lender credit), or adds them to the loan balance. You pay nothing at closing but more over time. It can make sense if you expect to sell or refinance again within a few years.
Can I negotiate refinance closing costs?
Lender fees (origination, application, underwriting) often are negotiable, especially with a competing Loan Estimate in hand. Title insurance and settlement services can be shopped; the Loan Estimate lists which ones.
Are prepaid interest and escrow deposits closing costs?
They appear on the closing disclosure, but they are not a cost of refinancing: you would owe the interest and taxes anyway, and your old escrow balance is refunded. Leave them out of break-even calculations.