Refinance Cost Calculator
What Are Refinance Closing Costs?
Refinance closing costs are the fees you pay at closing to complete the loan transaction. Unlike a home purchase, you are not paying a down payment — but you are still responsible for lender, third-party, and government fees that typically total 2–5% of the loan balance.
The CFPB's standardized Loan Estimate groups these costs into five sections:
- Section A — Origination charges: Fees charged directly by your lender. The most negotiable category.
- Section B — Services you cannot shop for: Appraisal, credit report, flood cert — ordered by the lender from specific vendors.
- Section C — Services you can shop for: Title search, title insurance, and settlement agent. You have the legal right to choose your own providers here.
- Section E — Taxes and government fees: Recording fees and any state mortgage recording taxes. Set by law, not negotiable.
- Sections F/G — Prepaids and escrow: Prepaid interest, homeowner's insurance, and initial escrow deposits. These aren't true closing costs — you'd pay them regardless — but they appear on the Loan Estimate.
This calculator focuses on Sections A–E, which represent the true cost of completing the refinance transaction.
Lender Fees — What's Negotiable
Lender fees are your biggest lever for reducing total closing costs. They are set entirely by the lender and can vary dramatically between offers.
Origination Fee
The origination fee (also called a lender fee or underwriting fee) is the primary way lenders charge for processing your loan. It typically runs 0.5–1% of the loan amount — $1,500–$3,000 on a $300,000 loan. Some lenders advertise "no origination fee" refinances, which usually means the cost is built into a higher rate instead. Always compare the APR, not just the rate, to account for this trade-off.
Discount Points
Points are optional upfront fees that permanently lower your rate. One point = 1% of the loan amount, and typically buys a rate reduction of 0.125–0.25%. Points are worth paying only if you stay past the break-even. Enter your estimated monthly savings above to calculate your specific break-even on points.
Underwriting / Processing Fee
This covers the lender's internal cost to review your application. Common range: $500–$1,200. Some lenders bundle this into the origination fee; others break it out. When comparing Loan Estimates, add origination + underwriting + processing to get a true lender fee total.
Third-Party Fees — Appraisal, Title, and Settlement
Appraisal
Most refinances require a full appraisal to confirm the property value — the denominator in your LTV calculation. Cost: $400–$700 for single-family homes, $600–$1,000 for multi-unit or complex properties. Some lenders offer appraisal waivers (using an automated valuation model) for borrowers with strong equity and loan histories — ask your lender if you qualify.
Title Search and Title Insurance
A title search confirms there are no liens, judgments, or ownership disputes on the property. The lender requires you to purchase lender's title insurance to protect their interest in the loan. You are not required to purchase owner's title insurance on a refinance (you still have your original owner's policy). Title costs vary widely by state — states like New York and Florida have state-filed rates, while others allow open competition.
Settlement / Closing Agent Fee
This covers the agent who manages the closing — reviewing documents, holding funds in escrow, and recording the deed. In attorney-required states (GA, SC, NY, MA, and others), this role must be filled by a licensed attorney and typically costs $700–$1,800. In non-attorney states, a title company or escrow officer fills the role at $300–$600.
You have the legal right under RESPA to shop for your own title company and settlement agent. Getting competitive quotes can save $300–$800 on this portion alone.
Government Fees and Mortgage Recording Taxes
Government recording fees ($50–$250) are paid to the county to record the new mortgage and satisfy the old one. These are non-negotiable.
Some states also impose a mortgage recording tax or intangible tax on new mortgage originations:
| State | Rate | On $300K Loan |
|---|---|---|
| New York (NYC) | 1.8–2.8% | $5,400–$8,400 |
| Florida | 0.35% | $1,050 |
| Georgia | 0.30% | $900 |
| Minnesota | 0.23% | $690 |
| Kansas | 0.26% | $780 |
| Virginia | ~0.33% | $990 |
| Alabama | 0.15% | $450 |
| Most other states | $0 | $0 |
New York offers the CEMA loan (Consolidation, Extension and Modification Agreement) which allows refinancing borrowers to avoid recording tax on the portion of the existing mortgage being consolidated — significantly reducing the tax bill on large refinances. See the New York refinance guide for details.
No-Closing-Cost Refinances — The Real Trade-Off
A no-closing-cost refinance doesn't eliminate fees — it changes how you pay them. The lender typically offers a slightly higher rate (often 0.125–0.375% more) in exchange for a lender credit that covers your closing costs.
Example: $6,000 in closing costs waived in exchange for a 0.25% higher rate on a $300,000 loan adds ~$47/month to your payment. After 10 years (120 months), you've paid $5,640 extra — roughly the same as the upfront cost. After 20 years, you've paid $11,280 — nearly double.
No-closing-cost refinances make financial sense if:
- You plan to sell or refinance again within 2–4 years
- The upfront cash isn't available or would be better deployed elsewhere
- Rates are expected to drop again soon, making another refinance likely
If you plan to stay in the home long-term, paying upfront closing costs and getting the best available rate almost always wins. Use the Break-Even Calculator to find your specific crossover point.
Frequently Asked Questions
What are typical refinance closing costs?
Typically 2–5% of the loan amount. On a $300,000 loan, expect $6,000–$15,000. Origination fees account for the largest variable — lenders charging 1% origination add $3,000 to costs compared to lenders with no origination fee. Always get Loan Estimates from at least three lenders and compare total fees, not just the interest rate.
Which fees are negotiable?
Lender fees (origination, underwriting, processing, rate lock) are the most negotiable — especially if you have strong credit and good equity. You can also shop for your own title company and settlement agent in most states (RESPA gives you this right). Government recording fees and mortgage recording taxes are non-negotiable.
What is a no-closing-cost refinance?
The lender covers your closing costs by offering a higher interest rate (a lender credit). The rate premium accumulates over time, so a no-closing-cost refi typically costs more than a standard refi if you keep the loan for many years. It's best suited for borrowers who plan to sell or refinance within 2–4 years.
What are discount points and are they worth it?
One point = 1% of the loan, paid upfront to reduce your rate by 0.125–0.25%. Enter your monthly savings in the calculator and set discount points to see the break-even on your specific scenario. Points are worth paying only if you stay past the break-even point.
Related Guides
- Mortgage Refinance Closing Costs: Every Fee Explained
- Refinance Break-Even Calculator — How Many Months to Recoup Closing Costs?
- Mortgage Savings Calculator — Monthly and Lifetime Net Savings
- Loan-to-Value Calculator — LTV, Equity, and Cash-Out Potential
- How to Compare Refinance Offers Side by Side
- The 1% Refinance Rule of Thumb
- Full Refinance Calculator — Compare Multiple Lender Offers
Compare Full Lender Offers Side by Side
The full RefinanceUSA calculator lets you enter rate, term, and closing costs for multiple lenders at once — showing you exactly which offer produces the lowest total cost for your situation.
Open the Refinance Calculator