Refinancing a mortgage typically costs between 2% and 6% of the new loan amount. For example, if you refinance a $150,000 mortgage, you might pay between $3,000 and $9,000 in closing costs
Common costs included in refinancing fees:
- Application fee: up to $500
- Loan origination and underwriting fees: $300 to $500
- Home appraisal fee: $300 to $700
- Credit check fee: around $25 to $80
- Title search and insurance: $300 to $2,000
- Recording fees: $25 to $250 depending on location
- Attorney or settlement fees: $500 to $1,000
- Other possible fees: survey fees, document preparation, flood certification, reconveyance fees
Factors affecting the cost:
- Your credit score (better credit usually means better rates)
- Type of refinance (cash-out refinances often have higher rates)
- Loan size and term length
- Property type (primary residence vs. investment property)
- Lender policies and fees
Summary:
Refinancing costs are similar to closing costs for a home purchase but without the need for a down payment. It’s important to calculate your break-even point to see if the monthly savings from refinancing outweigh the upfront costs
. Current refinance interest rates for a 30-year fixed loan are around 6.9% to 7.1%, which also impacts your overall cost and monthly payments
