Refinance
closing costs
Closing costs are the upfront price of a refinance. They determine break-even: costs divided by monthly savings.
What is usually included
Lender origination, application and underwriting fees; appraisal; title search and insurance; recording; credit report; and prepaid interest or escrow. Third-party fees vary by state and lender.
A simple example
If closing costs are $6,000 and the new payment is $150 lower, break-even is 40 months. If you sell or refinance again in 30 months, the refinance may not pay for itself.
Rolled-in costs are still costs
Adding fees to the loan avoids cash at closing but increases the balance and interest. Compare the total cost, not just the cash due today.
No-closing-cost offers
These usually mean a higher rate or a larger loan. Run the break-even and total interest with the actual rate, not the advertised headline.
FAQ
Can costs be rolled in?
Sometimes, but the larger balance still costs interest.
Are no-cost refinances free?
No. The cost is usually in the rate or balance.
Estimate only; not a loan offer or financial advice.