Quick answer
Refinance closing costs typically run 3%–6% of the loan, according to Freddie Mac — $7,500 to $15,000 on a $250,000 refinance. They cover lender fees, the appraisal, title services, recording and similar charges. You skip the down payment and usually the owner’s title policy and transfer tax you paid when buying. With a new lender, you have 3 business days after signing to cancel.
Key facts
20days
Money returned after you cancel, within
CFPB; 12 CFR 1026.15(d)(2) and 1026.23(d)(2) · Oct 28, 2026
What refinance closing costs include
Freddie Mac lists the usual refinance charges as lender origination and underwriting fees, the appraisal, credit report, tax service and survey fees, title services, attorney fees and government recording costs. Discount points, if you buy them, come on top. On your Loan Estimate they fall into a few sections:
| Section | What’s in it | Can you shop? |
|---|---|---|
| A. Origination charges | Lender fees and any discount points | Compare lenders — the total matters |
| B. Services you cannot shop for | Appraisal, credit report, tax service | No, but compare the total between lenders |
| C. Services you can shop for | Title services and survey, when the lender lets you shop | Yes — the lender lists providers, and you can choose others |
| E. Taxes and other government fees | Recording fees and, in some states, mortgage taxes | No |
| F and G. Prepaids and initial escrow | Interest to the end of the month, insurance, escrow deposit | Not a refinance cost — see below |
| J. Lender credits | Money from the lender toward your costs, usually for a higher rate | Ask for the rate options |
Refinance closing costs by loan size, using Freddie Mac’s range
| Loan amount | Low end (3%) | High end (6%) |
|---|---|---|
| $150,000 | $4,500 | $9,000 |
| $250,000 | $7,500 | $15,000 |
| $400,000 | $12,000 | $24,000 |
Some costs, such as the appraisal and recording fees, don’t shrink with the loan, so smaller loans tend to land toward the high end in percentage terms. A few states also tax the mortgage itself when it is recorded — about 1% in New York outside New York City and 0.23% in Minnesota, for example — and the rules for refinances vary. Your Loan Estimate shows any such tax in section E.
What you don’t pay again
A refinance is a new loan on a home you already own, so several purchase costs drop away:
| Cost | When you bought | When you refinance |
|---|---|---|
| Down payment | Yes | No |
| Lender fees and points | Yes | Yes |
| Appraisal | Usually | Usually — not on an FHA Streamline, and sometimes waived on conventional loans |
| Lender’s title insurance | Yes | Yes, for the new loan |
| Owner’s title insurance | Bought once | Not again |
| Transfer tax on the deed | In many states | Generally no — the home doesn’t change hands |
| Recording fees | Yes | Yes |
| Home inspection | Your choice | Not needed |
| Escrow deposit | Yes | Yes — the old escrow balance is usually refunded |
The last row explains why the cash you bring to closing can look higher than the costs. Prepaid interest and a new escrow deposit are money you would spend anyway, and the old servicer’s escrow refund comes back after the payoff. Leave them out when you work out your break-even point.
Your right to cancel
Because of this window, a refinance with a new lender usually funds a few days after you sign, and interest on the old loan runs until then. The right doesn’t apply to purchase loans. A refinance with your current lender is exempt except for any new money you borrow beyond the balance and the refinance costs. If the required notice or disclosures were never given, the right can last up to 3 years.
How to compare Loan Estimates
Lenders must send a Loan Estimate within 3 business days of your application, in the same format, so offers line up side by side. Our Loan Estimate and Closing Disclosure guide walks through every page.
Ask for the same loan from each lender
same term, rate type, loan amount and lock period, on the same day if you can, because rates move daily.
Compare rate, points and credits together.
A lower rate with two points is a different deal from a higher rate with a lender credit. Points are in section A; credits appear as a negative number in section J.
Compare the totals for sections A and B.
You can’t shop these separately, so the total is what counts.
Shop section C.
Title and settlement services can be bought from providers the lender doesn’t list.
Check the Comparisons section on page 3.
The APR and the Total Interest Percentage summarize cost over time.
Watch for changes before closing.
Some charges can’t rise at all; recording fees and services from the lender’s list can rise only 10% in total. You get the Closing Disclosure at least 3 business days before closing, and if the APR rises by more than 0.125%, that wait starts again.
Ways to keep costs down
- Ask for a lender credit — or roll the costs into the loan — if cash is tight. Both raise your cost over time; see no-closing-cost refinances.
- Skip points you didn’t ask for. Each one costs 1% of the loan and only pays off if you keep the loan long enough.
- Use a streamline if you qualify. FHA and VA streamline refinances need less paperwork, and FHA’s needs no appraisal.
- Ask your current lender for a quote. It already knows your loan, and its offer gives you another Loan Estimate to compare.
Frequently asked questions
How much are closing costs on a refinance?
Freddie Mac puts them at 3%–6% of the loan principal — $7,500 to $15,000 on a $250,000 refinance. Your Loan Estimate shows the exact figures.
Can I roll closing costs into my refinance?
Usually. Conventional loans let you finance closing costs within the loan-to-value limit, and a VA IRRRL can include them. An FHA Streamline can’t: FHA doesn’t let lenders add closing costs to the new loan, though a lender may cover them in exchange for a higher rate.
Are refinance closing costs tax-deductible?
Most aren’t. Points paid to refinance generally have to be deducted over the life of the loan rather than in the year you pay them, with an exception for the part used to substantially improve your main home. IRS Publication 936 has the details.
Do I get my escrow money back when I refinance?
Usually, yes. Your old servicer refunds what is left in the escrow account after the loan is paid off, while you fund a new escrow account at closing. That is why the cash you bring can be higher than the true costs.
Do I skip a mortgage payment when I refinance?
Not really. Mortgage interest is paid in arrears, so the payoff of your old loan includes interest up to the payoff date, and you prepay interest on the new loan at closing. The next due date may feel like a break, but the interest is still paid.
Can I cancel a refinance after closing?
Yes, within 3 business days if you refinanced your principal home with a new lender. Cancel in writing; the lender must return the money you paid within 20 days. Same-lender refinances are exempt except for new money.
Sources
- Freddie Mac My Home — Typical refinance closing costs, low end (share of loan principal); Typical refinance closing costs, high end (share of loan principal) (Oct 28, 2026)
- CFPB — Right to cancel a refinance or home equity loan on your principal home; After you cancel, the lender must return your money and release the lien within (Aug 8, 2024)
- New York Department of Taxation and Finance — State tax on recording a mortgage (Dec 30, 2025)
- Minnesota Department of Revenue — State tax on recording a mortgage (Oct 28, 2026)
- 12 CFR 1026.15(a)(3) and 1026.23(a)(3) — Right to cancel lasts up to this long if the required notice or disclosures were not given (Oct 28, 2026)
- CFPB — Lender must send the Loan Estimate within this many business days of your application (Oct 28, 2026)
- CFPB — Cumulative limit on increases for recording fees and lender-listed services (Sep 11, 2024)
- CFPB — You receive the Closing Disclosure at least this many business days before closing (Oct 28, 2026)
- 12 CFR 1026.22 — APR change that triggers a new 3-business-day wait (regular loans) (Oct 28, 2026)
- CFPB — Cost of one discount point (share of loan amount) (Oct 19, 2023)
- CFPB: Loan Estimate explainer
- 12 CFR 1026.23: Right of rescission
- IRS Publication 936: Home mortgage interest deduction
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.