Refinance closing costs typically range from 2-5% of the loan amount. On a $300,000 loan, that is $6,000 to $15,000. Common costs include the appraisal fee ($400-$700), title search and insurance ($500-$1,500), loan origination fee (0-1% of loan), credit report, recording fees, and prepaids. You can often roll these costs into the new loan.
Typical Refinance Closing Costs Breakdown
Appraisal: $400-$700. Title search and insurance: $500-$1,500. Loan origination fee: 0-1% of loan amount. Credit report fee: $30-$50. Recording fees: $100-$300. Survey (if required): $200-$500. Prepaid interest: varies. Escrow funding: varies. Total: 2-5% of loan amount.
Rolling Closing Costs into the Loan
You can often roll closing costs into the new loan instead of paying them upfront. This increases your loan balance but reduces cash needed at closing. The tradeoff is you pay interest on the rolled-in costs over the life of the loan. Compare the break-even point: monthly savings vs total cost.