Calculate closing costs when refinancing your mortgage. Understand lender fees, third-party costs, and total refinancing expenses.

Understanding Refinance Closing Costs

Refinancing your mortgage involves various closing costs that can significantly impact the overall cost of your new loan. Understanding these costs helps you determine if refinancing makes financial sense.

Our calculator helps you estimate all the costs involved in refinancing, from lender fees to third-party charges, so you can make an informed decision about whether to proceed with refinancing.

Types of Refinance Closing Costs

Lender Fees

• Application fee
• Origination fee
• Processing fee
• Underwriting fee
• Document preparation fee

Third-Party Costs

• Appraisal fee
• Credit report fee
• Title search and insurance
• Recording fees
• Attorney fees

Prepaid Items

• Property taxes
• Homeowners insurance
• Mortgage insurance
• Interest for partial month
• Escrow account funding

Other Costs

• Survey fee
• Pest inspection
• Flood certification
• Tax service fee
• Wire transfer fee

How to Use the Refinance Cost Calculator

Enter your current loan details: Current balance, interest rate, and remaining term
Input new loan information: New loan amount, interest rate, and term
Add closing costs: Estimated lender fees and third-party costs
Include prepaid items: Property taxes, insurance, and other prepaid expenses
Review your results: See total costs and break-even analysis

Typical Refinance Closing Costs

Cost Category	Typical Cost	Range	Notes
Application Fee	$300	$0-$500	May be waived
Origination Fee	1% of loan	0.5%-2%	Often negotiable
Appraisal Fee	$500	$300-$800	Required by lender
Title Insurance	$1,000	$500-$2,000	Based on loan amount
Recording Fee	$100	$50-$200	County specific

Break-Even Analysis

When Does Refinancing Make Sense?

The break-even point is when your monthly savings equal your total closing costs. This helps determine if refinancing is financially beneficial.

Break-Even Formula

Break-even months = Total closing costs ÷ Monthly payment savings

Example: $3,000 costs ÷ $200 savings = 15 months

When to Refinance

• Break-even in 24 months or less
• Planning to stay in home long-term
• Interest rate drop of 0.5% or more
• Switching from ARM to fixed rate

Ways to Reduce Refinance Costs

Negotiate with Lender

Many closing costs are negotiable. Ask your lender to waive or reduce application fees, origination fees, and other lender charges.

Shop Around

Compare offers from multiple lenders. Different lenders may have different fee structures and may be willing to compete for your business.

No-Cost Refinancing

Some lenders offer no-cost refinancing where they cover closing costs in exchange for a slightly higher interest rate.

Roll Costs into Loan

You can often roll closing costs into your new loan amount, though this increases your total debt and monthly payment.

Frequently Asked Questions

How much do refinance closing costs typically cost?

Refinance closing costs typically range from 2% to 6% of the loan amount. For a $200,000 loan, this would be $4,000 to $12,000 in closing costs.

Can I avoid paying closing costs when refinancing?

Some lenders offer no-cost refinancing where they cover closing costs in exchange for a higher interest rate. You can also negotiate with lenders to reduce or waive certain fees.

How long does it take to break even on refinance costs?

The break-even period depends on your closing costs and monthly savings. Use our calculator to determine your specific break-even point. Generally, aim for 24 months or less.

Are refinance closing costs tax deductible?

Refinance closing costs are generally not tax deductible for personal residences. However, some costs may be deductible if you're refinancing a rental property or investment property.

Ready to Calculate Your Refinance Costs?

Use our calculator above to estimate your refinance closing costs and determine if refinancing makes financial sense for your situation.

Make an informed decision about refinancing today!

Mortgage Lender Closing Costs Calculator For Refinance