How Much Does It Cost to Refinance a Mortgage?
Most guides say refinancing costs 2% to 5% of the loan. Federal records of real refinances show what borrowers actually paid — by loan type, state and lender — and what a no-closing-cost offer really costs.
Refinancing costs come in two parts: the fees to make the new loan — the lender’s charges, the appraisal, title insurance and settlement — and money collected at closing that isn’t really a fee, like prepaid interest and the deposit for your new escrow account. The fees are the part to compare between lenders, and federal mortgage records show what borrowers actually paid.
In 2025, the median conventional refinance cost borrowers $4,390 in loan costs on a $375,000 loan — about 1.2% of the balance — across 142,693 rate-and-term refinances in federal mortgage records. FHA refinances ran $8,654 (including FHA's 1.75% upfront premium) and VA refinances $4,343. That covers the lender's fees, the appraisal, title and settlement. Government recording fees, prepaid interest and the escrow deposit come on top, which is why lenders' quotes of "2% to 5%" look higher than what most borrowers pay in fees.
Estimate your own closing with the closing cost calculator, then see whether the refinance pays with the mortgage refinance calculator.
Refinance costs by loan type
Median costs by kind of refinance, 2025 (30-year fixed, first-lien, owner-occupied homes):
| Refinance | Loans | Median loan | Median loan costs | Share of loan | Lender origination | Paid points |
|---|---|---|---|---|---|---|
| Conventional, rate-and-term | 142,693 | $375,000 | $4,390 | 1.2% | $1,995 | 45% |
| FHA, rate-and-term | 72,940 | $325,000 | $8,654 | 2.7% | $465 | 30% |
| VA, rate-and-term | 123,322 | $365,000 | $4,343 | 1.2% | $2,350 | 54% |
| Jumbo, rate-and-term | 7,554 | $1,295,000 | $6,686 | 0.5% | $2,087 | 30% |
| Conventional cash-out | 187,635 | $235,000 | $6,333 | 2.7% | $4,061 | 73% |
| FHA cash-out | 104,157 | $245,000 | $12,080 | 4.9% | $5,582 | 84% |
| VA cash-out | 69,087 | $325,000 | $12,387 | 3.8% | $7,570 | 86% |
Loan costs are what the Closing Disclosure totals in section D: the lender's origination charges plus third-party services such as the appraisal, credit report, title insurance and settlement. FHA costs include the 1.75% upfront mortgage insurance premium even when it's added to the balance; VA costs include the funding fee for borrowers who aren't exempt. "Paid points" is the share of borrowers who bought discount points to lower their rate.
Cash-out refinances cost more in fees and in rate: the median conventional cash-out loan priced +0.42 pt against the market benchmark, against −0.06 pt for a rate-and-term refinance. If you only need some cash, compare a cash-out refinance with a home equity loan or HELOC.
What’s in refinance closing costs
Your Loan Estimate lists every charge in two groups. Loan costs (section D) are the price of the refinance itself; other costs (section I) are taxes and money set aside for you.
| Charge | Who charges it | Typical amount | Counted in the medians above? |
|---|---|---|---|
| Origination / lender fees | Your lender | See the lender table below | Yes |
| Discount points (optional) | Your lender | 1% of the loan per point | Yes |
| Appraisal | Appraiser | $400–$750, sometimes waived | Yes |
| Credit report, flood and tax certification | Lender / vendors | $50–$150 | Yes |
| Lender’s title insurance and title search | Title company | Often the largest third-party fee; varies by state | Yes |
| Settlement or closing fee | Title or escrow agent, or attorney | $300–$900 | Yes |
| Recording fees and transfer or mortgage taxes | County and state | $50–$300 in most states; much more where a mortgage tax applies | No |
| Prepaid interest | Lender | Interest to the end of the closing month | No |
| Initial escrow deposit | Your escrow account | A few months of taxes and insurance | No — and your old escrow balance is refunded |
Two of these deserve a closer look. Title insurance is often the biggest third-party line: because the home was insured when you bought it, ask the title company for a reissue or refinance rate. Prepaids and escrow inflate the check you write, but they’re your own taxes and insurance collected early, and the servicer of your old loan refunds its escrow balance within weeks.
Refinance closing costs by state
Median loan costs on a conventional rate-and-term refinance by state, 2025, cheapest first. They run from $2,162 in Iowa to $7,357 in Hawaii (the U.S. median is $4,390). Title insurance pricing, local closing practices and loan sizes all differ by state.
| State | Median loan costs | Median loan | Share of loan | Refinances |
|---|---|---|---|---|
| Iowa | $2,162 | $255,000 | 0.8% | 1,327 |
| Wisconsin | $2,448 | $295,000 | 0.8% | 3,355 |
| Nebraska | $2,746 | $255,000 | 1.1% | 922 |
| Illinois | $2,880 | $335,000 | 0.9% | 7,052 |
| Missouri | $3,054 | $275,000 | 1.1% | 3,451 |
| Kansas | $3,194 | $285,000 | 1.1% | 1,060 |
| Indiana | $3,315 | $235,000 | 1.4% | 3,239 |
| Kentucky | $3,565 | $245,000 | 1.5% | 1,808 |
| Ohio | $3,587 | $245,000 | 1.5% | 4,905 |
| Michigan | $3,608 | $255,000 | 1.4% | 5,720 |
| Vermont | $3,718 | $315,000 | 1.2% | 224 |
| New Hampshire | $3,789 | $395,000 | 1.0% | 1,099 |
| Massachusetts | $3,884 | $485,000 | 0.8% | 4,050 |
| Maine | $3,913 | $315,000 | 1.2% | 752 |
| Arkansas | $4,054 | $245,000 | 1.7% | 1,170 |
| Arizona | $4,068 | $385,000 | 1.1% | 4,251 |
| Colorado | $4,107 | $455,000 | 0.9% | 5,088 |
| Rhode Island | $4,155 | $375,000 | 1.1% | 526 |
| West Virginia | $4,180 | $185,000 | 2.3% | 301 |
| Minnesota | $4,256 | $315,000 | 1.4% | 2,537 |
| California | $4,331 | $605,000 | 0.7% | 20,279 |
| North Carolina | $4,365 | $345,000 | 1.3% | 4,298 |
| Virginia | $4,512 | $395,000 | 1.1% | 4,172 |
| Washington | $4,586 | $505,000 | 0.9% | 5,431 |
| South Dakota | $4,631 | $305,000 | 1.5% | 348 |
| Mississippi | $4,761 | $245,000 | 1.9% | 698 |
| District of Columbia | $4,828 | $615,000 | 0.8% | 271 |
| South Carolina | $4,852 | $325,000 | 1.5% | 2,159 |
| Nevada | $4,855 | $385,000 | 1.3% | 1,213 |
| Utah | $4,887 | $435,000 | 1.1% | 2,917 |
| North Dakota | $4,912 | $295,000 | 1.7% | 168 |
| Maryland | $4,918 | $395,000 | 1.2% | 2,565 |
| Connecticut | $4,943 | $355,000 | 1.4% | 1,302 |
| New Jersey | $4,972 | $435,000 | 1.1% | 4,593 |
| Oregon | $5,021 | $415,000 | 1.2% | 2,325 |
| Tennessee | $5,041 | $335,000 | 1.5% | 3,232 |
| Alabama | $5,066 | $285,000 | 1.8% | 1,768 |
| Wyoming | $5,115 | $315,000 | 1.6% | 238 |
| Louisiana | $5,296 | $265,000 | 2.0% | 1,039 |
| Montana | $5,477 | $405,000 | 1.4% | 628 |
| Pennsylvania | $5,519 | $295,000 | 1.9% | 3,571 |
| New Mexico | $5,540 | $295,000 | 1.9% | 588 |
| Delaware | $5,564 | $365,000 | 1.5% | 448 |
| Oklahoma | $5,629 | $255,000 | 2.2% | 1,029 |
| Georgia | $5,696 | $335,000 | 1.7% | 4,235 |
| Alaska | $5,827 | $315,000 | 1.8% | 125 |
| Idaho | $6,059 | $375,000 | 1.6% | 1,072 |
| Texas | $6,131 | $335,000 | 1.8% | 9,987 |
| New York | $6,299 | $395,000 | 1.6% | 2,992 |
| Florida | $6,362 | $335,000 | 1.9% | 5,783 |
| Hawaii | $7,357 | $580,000 | 1.3% | 382 |
Transfer or mortgage-recording taxes are extra in some states and can be the biggest line: New York's mortgage recording tax, for example, isn't in these figures. Each state's rates page has its own purchase and refinance pricing.
Refinance fees by lender
Median loan costs on conventional rate-and-term refinances at the 46 lenders with at least 100 of them in 2025, lowest first. "Rate vs. market" is the median APR above (+) or below (−) the benchmark for the week each rate was locked, so a lender that charges little up front but more in rate shows up here.
| Lender | Refinances | Median loan costs | Median loan | Rate vs. market | Got lender credits |
|---|---|---|---|---|---|
| TD Bank | 156 | $99 | $165,000 | +1.15 pt | 6% |
| Chase | 5,652 | $998 | $335,000 | −0.16 pt | 48% |
| Veterans United | 145 | $1,657 | $475,000 | −0.44 pt | 86% |
| NBKC Bank | 582 | $2,053 | $445,000 | −0.25 pt | 50% |
| Navy Federal Credit Union | 428 | $2,396 | $325,000 | −0.30 pt | 16% |
| Fifth Third Bank | 762 | $2,634 | $225,000 | −0.07 pt | 71% |
| SoFi | 326 | $3,130 | $405,000 | −0.07 pt | 55% |
| Northpointe Bank | 420 | $3,268 | $565,000 | −0.29 pt | 76% |
| Mutual of Omaha Mortgage | 627 | $3,277 | $485,000 | −0.18 pt | 62% |
| Huntington Bank | 669 | $3,305 | $245,000 | +0.04 pt | 83% |
| U.S. Bank | 1,481 | $3,394 | $395,000 | −0.10 pt | 94% |
| KeyBank | 163 | $3,504 | $195,000 | −0.14 pt | 55% |
| Bank of America | 628 | $3,680 | $405,000 | −0.27 pt | 55% |
| Citizens | 555 | $3,725 | $255,000 | −0.09 pt | 82% |
| Truist | 440 | $3,727 | $345,000 | −0.13 pt | 60% |
| Better | 413 | $3,900 | $425,000 | −0.14 pt | 51% |
| Prosperity Home Mortgage | 381 | $3,943 | $375,000 | +0.02 pt | 42% |
| Wells Fargo | 988 | $3,972 | $285,000 | −0.12 pt | 70% |
| Regions Bank | 231 | $4,017 | $285,000 | −0.07 pt | 63% |
| First Horizon Bank | 104 | $4,019 | $380,000 | −0.19 pt | 43% |
| Guaranteed Rate (Rate) | 2,343 | $4,062 | $475,000 | −0.03 pt | 58% |
| PenFed Credit Union | 106 | $4,070 | $380,000 | −0.22 pt | 59% |
| Lakeview Loan Servicing | 988 | $4,140 | $405,000 | −0.16 pt | 38% |
| Guild Mortgage | 2,737 | $4,264 | $345,000 | +0.01 pt | 46% |
| PNC Bank | 580 | $4,311 | $225,000 | −0.19 pt | 81% |
| Flagstar Bank | 232 | $4,371 | $310,000 | +0.09 pt | 38% |
| CrossCountry Mortgage | 3,038 | $4,397 | $425,000 | +0.10 pt | 54% |
| Fairway Independent Mortgage | 1,784 | $4,404 | $385,000 | +0.09 pt | 30% |
| loanDepot | 1,636 | $4,502 | $395,000 | −0.06 pt | 54% |
| Movement Mortgage | 926 | $4,576 | $455,000 | −0.14 pt | 61% |
| Newrez | 2,262 | $4,622 | $415,000 | −0.08 pt | 61% |
| CMG Home Loans | 2,182 | $4,726 | $455,000 | +0.00 pt | 62% |
| Mr. Cooper | 2,125 | $4,750 | $345,000 | −0.21 pt | 37% |
| M&T Bank | 157 | $4,853 | $375,000 | −0.16 pt | 40% |
| Planet Home Lending | 171 | $4,923 | $355,000 | −0.12 pt | 67% |
| Union Home Mortgage | 1,333 | $4,959 | $315,000 | +0.03 pt | 40% |
| Rocket Mortgage | 14,448 | $5,098 | $355,000 | −0.09 pt | 1% |
| New American Funding | 964 | $5,187 | $345,000 | +0.14 pt | 36% |
| United Wholesale Mortgage | 22,031 | $5,581 | $445,000 | −0.13 pt | 65% |
| PennyMac | 3,047 | $5,694 | $465,000 | −0.16 pt | 64% |
| Primary Residential Mortgage | 195 | $5,941 | $345,000 | +0.05 pt | 39% |
| Cardinal Financial | 219 | $6,306 | $335,000 | −0.00 pt | 59% |
| Supreme Lending | 269 | $6,399 | $335,000 | +0.12 pt | 51% |
| Freedom Mortgage | 663 | $6,769 | $335,000 | −0.02 pt | 53% |
| Carrington Mortgage | 119 | $8,273 | $255,000 | +0.17 pt | 63% |
| AmeriSave Mortgage | 100 | $11,482 | $300,000 | −0.18 pt | 18% |
Low fees can mean a higher rate: TD Bank priced more than half a point above the market benchmark. Medians describe a lender's typical loan, not your quote — compare Loan Estimates from at least three lenders on the same day. More detail on each lender is on the mortgage lenders page.
No-closing-cost refinance: how it really works
A "no-closing-cost" refinance doesn't make the fees disappear: the lender pays them with a credit and charges a higher rate, or adds them to your balance. Here are the three ways to pay the median $4,390 on a $375,000 refinance at this week's 7.09% conforming average (Optimal Blue, Nov 5, 2026).
| Option | Rate | Monthly P&I | Cash at closing | Cost after 3 yrs | After 5 yrs | After 10 yrs |
|---|---|---|---|---|---|---|
| Pay the costs at closing | 7.09% | $2,518 | $4,390 | $82,949 | $133,776 | $253,975 |
| Roll the costs into the loan | 7.09% | $2,547 | $0 | $83,869 | $135,291 | $256,897 |
| No-closing-cost (higher rate) | 7.38% | $2,592 | $0 | $81,870 | $134,919 | $260,673 |
"Cost" is the fees plus interest paid — principal you repay isn't counted, since it's your equity. The no-closing-cost rate assumes the lender credit buys back about 0.25% of rate per point, a common rule of thumb; real lender pricing varies. Paying the costs up front comes out ahead after about 4 yr — if you expect to sell or refinance again before then, the no-closing-cost loan is the cheaper one. In 2025, 46% of conventional refinances included a lender credit.
How to lower your refinance costs
- Get three Loan Estimates on the same day. Lenders must give you one within three business days of applying, in the same format, so the fees line up side by side. Compare section A (origination charges) and the rate together.
- Ask about an appraisal waiver. Fannie Mae and Freddie Mac skip the appraisal on many refinances where they already have reliable value data; your lender will see whether you qualify.
- Ask for the title reissue rate, and shop the title and settlement services the Loan Estimate says you can shop for.
- Use a streamline refinance if you have an FHA or VA loan. FHA streamline and VA IRRRL refinances can skip the appraisal and most underwriting, which trims third-party costs.
- Check your current servicer. Lenders sometimes discount fees to keep your loan — but compare the rate, not just the fees.
- Don’t buy points you won’t keep long enough to earn back. The mortgage points calculator shows the break-even month for each point.
How long it takes to earn the costs back
How long the median $4,390 takes to earn back on a $375,000 balance, refinancing into a new 30-year loan at this week's 7.09% — against the 3%-of-the-loan ($11,250) figure many lenders quote:
| Rate drop | Monthly savings | Break-even at median costs | Break-even at 3% costs |
|---|---|---|---|
| 0.5 points lower | $128 | 35 months | 89 months |
| 0.75 points lower | $192 | 23 months | 59 months |
| 1.0 point lower | $258 | 18 months | 44 months |
| 1.5 points lower | $390 | 12 months | 29 months |
This counts only principal and interest and resets the clock to 30 years, which lowers the payment partly by stretching it. Whether that trade suits you — and how to avoid paying more interest over the life of the loan — is covered in when refinancing makes sense; run your own loan in the should I refinance calculator.
The bottom line
Most refinances cost far less in fees than the “2% to 5%” rule of thumb suggests — but the fees vary a lot by state and by lender, and the cheapest-looking offer can carry a higher rate. Compare Loan Estimates on the same day, weigh the fees against the rate, and make sure you’ll keep the new loan long enough to earn them back. For the decision itself — break-even, the term-reset trap and when to skip it — see when refinancing makes sense.
Frequently asked questions
How much does it cost to refinance a mortgage?
In 2025 the median conventional rate-and-term refinance cost $4,390 in lender and third-party fees on a $375,000 loan — about 1.2%; FHA refinances $8,654 including the upfront mortgage insurance premium, and VA $4,343.
Recording fees, any state taxes, prepaid interest and a new escrow deposit are extra, so the cash needed at closing is higher than the fees alone.
How much does it cost to refinance a $300,000 loan?
Roughly the national median: $4,390 in lender and third-party fees on a conventional refinance in 2025, when the median loan was $375,000.
Many fees — the appraisal, title and settlement — don't shrink with the balance, so on $300,000 the same dollars are about 1.5% of the loan. Your state matters more than the loan size: medians ran from $2,162 to $7,357 by state.
What is a no-closing-cost refinance?
One where you pay nothing at closing because the lender covers the fees with a credit in exchange for a higher interest rate — or adds the fees to the loan. You still pay; just over time instead of up front.
It's usually the better deal if you'll sell or refinance again within a few years, and the worse one if you keep the loan for a long time.
Can you roll closing costs into a refinance?
Usually yes, as long as the new balance stays within the loan-to-value limit for your loan type.
You avoid writing a check, but you pay interest on the fees for as long as you keep the loan, and the bigger balance can push you over 80% loan-to-value and into PMI.
Is refinancing worth it for 1%?
Often, if you'll keep the loan a few years. On a $375,000 balance, dropping from 8.09% to this week's 7.09% cuts principal and interest by about $258 a month, which earns back the median $4,390 in fees in about 18 months. Check total interest too if the new loan restarts a 30-year term.
What is the 2% rule for refinancing?
An old rule of thumb that a refinance pays only when rates fall two percentage points. It dates from when fees were a bigger share of smaller loans.
Today the break-even is the better test: divide the closing costs by the monthly savings and compare that with how long you'll keep the loan — a half-point drop can pay off on a larger balance.
Are refinance closing costs tax deductible?
Mostly not. Points paid on a refinance can be deducted, but generally spread over the life of the loan rather than all in the first year (IRS Publication 936); fees such as the appraisal, title insurance and recording aren't deductible. Mortgage interest and, from 2026, mortgage insurance premiums are deductible if you itemize.
Does refinancing with the same lender cost less?
Sometimes. Your current lender or servicer may waive or discount some fees to keep your loan, and some offer streamlined refinances with fewer third-party costs.
But the lender with the lowest fees isn't always the cheapest overall — compare the rate and the total costs on each Loan Estimate.
Sources
- FFIEC — HMDA data browser (loan-level records)
- CFPB — Closing Disclosure explainer (loan costs vs. other costs)
- IRS Publication 936 — Home mortgage interest deduction (points on a refinance)
- Optimal Blue Mortgage Market Indices on FRED (conforming 30-year)
- CFPB — Loan Estimate explainer
How the figures on this site are calculated and tested: methodology · editorial policy.
This guide is general educational information, not financial advice. Confirm specifics with a licensed lender or advisor.