Refinance closing costs vary based on your loan amount, property location, loan program, and the services required to complete your loan. There isn’t a one-size-fits-all answer.

Typical refinance closing costs may include:

• Lender fees
• Appraisal (if required)
• Title and settlement services
• Recording fees
• Credit report and verification fees
• Prepaid interest
• Escrow funding, if applicable

One common misconception is that closing costs are simply “extra money.” In reality, part of what you see on a refinance estimate may include setting up a new escrow account for property taxes and homeowners insurance. If your current lender is holding money in escrow, those funds are typically refunded to you after your old loan is paid off.

Unlike purchasing a home, refinances usually don’t require an owner’s title insurance policy because you already own the property. That often makes refinance closing costs lower than purchase closing costs.

The best way to estimate your costs is to review your specific loan scenario. We’ll provide a Loan Estimate early in the process so you know exactly what to expect, and we’ll explain which costs are lender fees, third-party fees, prepaid expenses, and escrow deposits.

To learn more about refinances, visit the Refinance page.