The 2026 Average: What Borrowers Actually Pay
Industry data from CFPB's Loan Estimate studies and ClosingCorp's annual reports consistently put the national average refinance closing cost at approximately $4,345 excluding prepaid items (prepaid interest, property taxes, homeowners insurance). When prepaid items are included, the true out-of-pocket figure rises to $6,000–$10,000 for most refinances.
As a percentage of loan balance, closing costs typically run 2–5%. The percentage shrinks on larger loans because many fees (appraisal, title search, recording) are fixed dollar amounts that don't scale with loan size.
| Closing Cost Component | Average Cost | Range |
|---|---|---|
| Origination / lender fee | $1,100 | $500–$2,500 |
| Appraisal | $525 | $400–$700 |
| Title insurance (lender policy) | $900 | $500–$1,500 |
| Title search & examination | $200 | $100–$400 |
| Settlement / closing fee | $350 | $200–$600 |
| Government recording fees | $150 | $50–$300 |
| Credit report | $30 | $15–$75 |
| Flood certification | $20 | $10–$50 |
| Subtotal (excluding prepaid) | ~$3,275 | $2,000–$6,000 |
| Prepaid interest (15 days avg) | $450 | $200–$900 |
| Escrow setup (taxes + insurance) | $1,500 | $600–$3,500 |
| Total (all-in) | ~$5,225 | $3,000–$12,000 |
Average Closing Costs by Loan Type
Loan type has a major impact on total closing costs — primarily because of government-mandated fees like FHA's UFMIP and VA's funding fee.
| Loan Type | Average Total | Key Driver |
|---|---|---|
| Conventional rate-and-term | $3,000–$7,000 | Lender + title fees |
| FHA rate-and-term | $4,000–$9,000 | UFMIP (1.75% of loan) |
| FHA Streamline | $1,500–$4,500 | No appraisal; reduced title |
| VA IRRRL (Streamline) | $1,500–$4,000 | 0.5% funding fee; no appraisal |
| VA cash-out refinance | $4,000–$9,000 | 2.15–3.3% funding fee |
| Cash-out (conventional) | $5,000–$12,000 | Higher loan amount + risk premium |
| Jumbo refinance | $7,000–$20,000+ | Title scales with loan size; stricter underwriting |
See the FHA refinance closing costs guide for a detailed FHA breakdown, or the VA IRRRL closing costs guide for VA-specific numbers.
Average Closing Costs by State Tier
State laws — particularly around transfer taxes, attorney requirements, and title insurance rates — create wide variation in closing costs across the country. The same $300,000 refinance can cost $2,800 in Missouri and $7,500 in New York.
| State Tier | Example States | Typical Closing Cost Range |
|---|---|---|
| Low-cost states | MO, AR, IN, IA, WI | $2,000–$4,500 |
| Mid-cost states | TX, FL, OH, AZ, CO | $3,500–$6,500 |
| Higher-cost states | CA, IL, MD, VA, WA | $5,000–$9,000 |
| Highest-cost states | NY, NJ, CT, PA, HI | $7,000–$15,000+ |
High-cost states typically require attorney involvement, impose mortgage recording taxes, or have mandatory title insurance premiums that are regulated at high rates. See refinance closing costs by state for a full state-by-state breakdown.
Why New York and New Jersey Are So Expensive
New York charges a mortgage recording tax of 1.05–2.175% of the loan amount — on a $400,000 refinance, that alone adds $4,200–$8,700. New Jersey requires an attorney at closing. These mandatory government costs explain the enormous gap between low- and high-cost states.
Which Fees Are Negotiable — and Which Aren't
| Fee | Negotiable? | Strategy |
|---|---|---|
| Origination / lender fee | Yes — highly | Get 3+ Loan Estimates; ask competing lenders to match |
| Discount points | Yes | Decline points if break-even exceeds your hold period |
| Appraisal fee | Slightly | Some lenders absorb appraisal; ask upfront |
| Title insurance (lender) | Yes — shop companies | In most states you can choose your title company |
| Settlement / closing fee | Yes | Part of title company bundle — shop with lender title |
| Recording fees | No | Set by local government; not negotiable |
| Prepaid interest | Indirectly | Close later in the month to reduce prepaid days |
| FHA UFMIP | No | Fixed at 1.75% by FHA rule |
| VA funding fee | No (unless exempt) | Veterans with service-connected disability pay zero |
Use the Closing Cost Calculator to model your specific loan amount and see the full cost estimate — including how we calculate each fee component.
How to Calculate Your Break-Even on Closing Costs
Once you know your total closing costs, the key question is whether you will stay in the home long enough to recoup them through lower monthly payments. The formula:
Break-even (months) = Total closing costs ÷ Monthly payment reduction
Example: $5,000 in closing costs, $175/month savings = 28.6 months (about 2.5 years). If you plan to stay at least 3 years, the refinance pays off.
Use the Break-Even Calculator to run this for your exact numbers, or the Mortgage Savings Calculator to see total long-term savings after closing costs.
Frequently Asked Questions
What is the average closing cost to refinance a mortgage in 2026?
What fees make up refinance closing costs?
How do closing costs differ by loan type?
Are refinance closing costs tax deductible?
Can I avoid paying closing costs when I refinance?
Related Calculators and Guides
- Closing Cost Calculator — estimate fees for your specific loan amount
- Break-Even Calculator — see how many months until closing costs are recovered
- Mortgage Savings Calculator — total lifetime savings after closing costs
- Closing Costs by State — state-specific fee ranges and transfer tax rules
- Roll Closing Costs Into Your Loan — the break-even trade-off explained
- Closing Costs by Loan Amount — exact fee tables for $100K–$750K loans
- Mortgage Refinance Calculator — free tool to estimate your new monthly payment, savings, and break-even
Calculate Your Actual Closing Costs
Enter your loan amount, state, and loan type to see a detailed fee estimate and break-even timeline.