--- title: How Much Does It Cost to Refinance a Mortgage? description: Mortgage refinance costs are similar to the closing costs you pay when you buy a home. Here’s a breakdown of all the fees. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 597 covers: - Mortgages - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Leslie Cook role: Editor, Real Estate url: https://money.com/author/leslie-cook/ bio: Leslie Cook is Money’s lead real estate editor covering trends in the housing market, mortgage rates and real estate. She also writes about home renovation trends and tips. education: Bryn Mawr College, BA History at_money_since: 2019 articles: 797 covers: - Mortgages - Banking - Credit - Economy and Politics - Housing - Identity Theft - Insurance - Loans - Personal Finance - Professional Services - Retirement - Taxes social: - https://twitter.com/LeslieLCook - https://www.linkedin.com/in/leslie-cook-9829b9198/ updaters: - name: Kristi Waterworth role: Contributing writer url: https://money.com/author/kristi-waterworth/ bio: Kristi Waterworth is a financial journalist based in the Missouri Ozarks. Her work has appeared in a wide range of publications, including US News and World Report and The Motley Fool. With 10 years of experience working as a Realtor, Kristi brings her inside knowledge to the mortgage and real estate beat. When she's not writing, she spends her time wandering the forest with her dog, luring birds to feeding stations in her backyard, and tending her certified pollinator habitat. education: Columbia College at_money_since: 2025 covers: - Mortgages former_staff: true published: '2026-06-21T12:41:03.000Z' modified: '2026-07-22T20:39:59.000Z' section: Mortgages word_count: 1126 canonical: https://money.com/how-much-does-it-cost-to-refinance-mortgage/ type: Article source: structured-blocks --- > **Disclosure:** We may earn a fee if you click on the links below. Compensation does not determine ranking. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![How Much Does It Cost to Refinance a Mortgage?](https://img.money.com/2024/01/Explainer-Refinance-Mortgage-Cost.jpg?quality=85&w=1012&h=569&crop=1) * * * ## Our Partners ![View Options](https://s3.consumersadvocate.org/prd/image/image/26689/medium_6508809f-2f35-4a12-891b-de71ec1923f4.png) Our Partner [View Options](https://money.com/go/b109a581e09a?ap_referrer=%2Fhow-much-does-it-cost-to-refinance-mortgage%2F&bidid=4030006115&ptid=662334489&ptoken=785f7864a59c8623cbf4fe5317d0c2a0&zip=20149) **Explore refinance paths designed around you** - Access the equity you’ve built over time - Simplify finances with one monthly payment - Pay less interest by adjusting your loan term - Tailored refinancing options to fit your plans * * * ![View Options](https://s3.consumersadvocate.org/prd/image/image/38123/medium_1a99822f-dc60-4821-9d86-996d5973edff.webp) Our Partner [View Options](https://money.com/go/34eaa529a3a8?ap_referrer=%2Fhow-much-does-it-cost-to-refinance-mortgage%2F&bidid=4030006114&ptid=662334489&ptoken=dff1d1e764cbc35583769f8da81ae73d&zip=20149) **Prequalify online in minutes with no impact to credit** - No SSN or hard credit pull required to get credit approved - Low refinance rates, Cashout refinance and Home Equity financing - A+ rating with BBB with 21 years experience - Variety of loan options and closing costs. Compare AmeriSave today! * * * ![View Options](https://s3.consumersadvocate.org/prd/image/image/7885/medium_d780d5e7-9a36-4e28-bfb8-0cebcac2a998.png) Our Partner [View Options](https://money.com/go/08bb46e4bb64?ap_referrer=%2Fhow-much-does-it-cost-to-refinance-mortgage%2F&bidid=4030006116&ptid=662334489&ptoken=63140ce0317f5d26d813210eb5795263&zip=20149) **600 minimum credit score**  - Access your home's equity with a Cash-Out Refinance - Refinance up to 100% of your primary home’s value - FDIC Bank since 1919 with A+ BBB Rating - Conventional, FHA, VA, bank statement and rental income only loans * * * ![View Options](https://s3.consumersadvocate.org/prd/image/image/22258/medium_c4af4862-2fc0-4478-9484-4358669e11ec.png) Our Partner [View Options](https://money.com/go/c7122c18ac12?ap_referrer=%2Fhow-much-does-it-cost-to-refinance-mortgage%2F&bidid=4030006113&ptid=662334489&ptoken=553d447e6f5b1b32d01bb12b468879db&zip=20149) **Unlock cash from within your home** - Powerful loan refinancing solutions - Real-time updates on loan process - 100% online experience - Get matched to the best rate in our network * * * ![View Options](https://s3.consumersadvocate.org/prd/image/image/34122/medium_80d7eeb8-df22-4887-8e15-818d0df30ef5.webp) Our Partner [View Options](https://money.com/go/3e2aa19d0c9c?ap_referrer=%2Fhow-much-does-it-cost-to-refinance-mortgage%2F&bidid=4030006117&ptid=662334489&ptoken=1e291807c941c79afadf437da3b1af66&zip=20149) **Find Trusted Lenders. Refinance with Confidence** - Easy, secure process designed for today’s homebuyers - Connect with lenders offering VA, FHA, USDA, jumbo, and conventional loans - Network of local, regional, and national lending partners - Whether you’re buying your first home or your next, we’ll help you take the next step with confidence ## Key Takeaways - You will typically pay between 2% and 6% of the loan amount in closing costs when you refinance a mortgage. - You may have to pay a separate fee for a home appraisal, which typically ranges from $300 to $600. The cost may be higher depending on the home and its location. - Most experts say that a rate and term refinance makes sense if you can reduce your current interest rate by at least 0.75 percentage points. Mortgage refinance can help borrowers save money on interest and lower their monthly payments, but it’s important to understand all the associated costs to ensure it’s worth it. Mortgage refinancing costs are similar to the closing costs you pay when you buy a house. That’s because refinancing means replacing your current mortgage with a new home loan, often with an entirely new lender. Borrowers who refinance have to foot the bill for loan underwriting fees, a home appraisal and title search fees, among other costs. These expenses can add up, so if your goal is to save money, you should calculate if and when your savings from a lower interest rate will make up the cost of refinancing. Here’s what you need to know about how much it will cost to refinance a mortgage: ## Table of contents - [Typical costs to refinance a mortgage](#Typical) - [Factors that affect how much mortgage refinancing costs](#Factors) - [How can I save money on refinancing costs?](#How) - [Is refinancing a mortgage worth the cost?](#Is) - [FAQs about the cost of refinancing a mortgage](#FAQ) ## If you're staying put in your current home, consider refinancing your mortgage ### Refinancing with Rocket Mortgage (NMLS #3030) could save you money by helping you secure a competitive interest rate. Click on your state to view today's rates. [View Options](https://money.com/pr/ffcd835306d1?ap_referrer=%2Fhow-much-does-it-cost-to-refinance-mortgage%2F) ## How much does it cost to refinance a mortgage? The cost to [refinance a mortgage](https://money.com/best-mortgage-refinance/) is typically 2% to 6% of the loan amount. For example, a homeowner could expect to pay between $3,000 and $9,000 when refinancing an outstanding mortgage balance of $150,000. Refinancing costs are about the same as the [closing costs](https://money.com/what-are-mortgage-closing-costs/) for [buying a house](https://money.com/how-to-buy-a-house/). The big difference is that a [down payment](https://money.com/how-to-save-for-a-down-payment/) isn’t necessary when you refinance because borrowers already have equity in their home. However, the actual cost to refinance your mortgage will vary widely based on the type of loan you’re getting, whether or not you choose to buy discount points, the fees your lender is charging and what other paperwork your bank will require. ### What are all the costs to refinance a mortgage? Refinancing a mortgage involves more costs than you might think. Whether you’re considering a refinance now or just trying to get a sense of how much money you would need to do it in the future if rates fall, here are the main costs to have on your radar: - **Loan origination fees:** Usually 0.5% to 1% of the amount of your mortgage - **Loan application fees:** Usually a few hundred dollars - **Title service fees:** Includes a title search fee, title insurance and other costs - **Cost of the home appraisal:** Typically ranges from $300 to $600 - **Discount points:** Cost based on the loan amount and loan type. - **Other fees, if applicable:** Examples include attorney fees, survey fees, credit report fees and government recording fees ## Factors that affect how much mortgage refinancing costs Several factors influence how much you actually end up paying to refinance your mortgage. Here’s what you should pay attention to: ### Loan amount Your loan amount exerts the most significant influence on the price of your refinancing costs. Since many of the larger expenses are based on a percentage of your new loan, the more you borrow, the more you’ll pay. For example, origination fees are based on a percentage of your loan amount, as is any kind of upfront mortgage insurance that you may be required to prepay. You can minimize these fees by refinancing only for the amount you need rather than the amount the lender offers. Just because they will give you 90% of your home’s equity, for example, doesn’t mean you have to take it. You can always opt to borrow less and pay lower fees. ### Credit With a good credit score, you will qualify for better interest rates, and you may also save money on refinancing costs. Mortgage lenders are more eager to work with loan applicants who have good credit, so they may offer you a lower origination fee if your credit profile is exceptional. ### Location Refinance closing costs vary by home location. Labor costs in the area affect the cost of almost every [step of the mortgage refinance process](https://money.com/mortgage-refinance-steps-checklist/). For example, appraisals to determine a home’s value tend to be more expensive in high-cost-of-living areas and in remote areas where more travel is required. In addition, if your loan will be escrowed for insurance and taxes, both items are highly location-specific in regard to pricing. A house in Springfield, Missouri, will have significantly lower taxes and insurance than one in Palm Beach, Florida. You’ll have to come up with a much smaller amount of money for prepaid escrow items in Springfield than in Palm Beach. ### Type of loan Some closing costs may be slightly lower for government-backed loans compared to conventional loans. Government-backed loans include FHA, VA and USDA loans. Origination fees for VA loans, for example, can’t exceed 1% of the loan amount. However, depending on how much of your equity you borrow, you may have to pay additional or higher fees that may not be required for conventional loans. For example, upfront mortgage insurance for an FHA loan is often much higher than for a conventional loan. In addition to the loan type, the specific type of refinance can also affect the total costs. [Streamline refinancing](https://money.com/heres-a-fast-and-overlooked-way-to-refinance-your-mortgage/) is usually cheaper, while a [cash-out refinance](https://money.com/cash-out-refinance-guide/) can be more expensive than a typical refinance. No-closing-cost refinancing is the cheapest option in terms of initial costs, but it’s important to understand that you will likely have a higher interest rate as a result, meaning you’ll have higher monthly mortgage payments. You’re not avoiding the refinance costs; you’re just not paying them up front. ## How can I save money on refinancing costs? The most important thing you can do to save money on refinancing costs is to shop around with several different refinance lenders. In addition to comparing refinance rates, compare their origination, application and appraisal fees. You can also ask your lender to waive or lower fees. This strategy may be a long shot, but it can be worth trying, especially if you have good credit and significant home equity. ## Is refinancing a mortgage worth the cost? As a general rule of thumb, refinancing a mortgage is worth the cost if your new interest rate will be at least [0.75 percentage points lower](https://money.com/is-now-a-good-time-to-refinance/) than your old rate. However, it’s best to use a refinance calculator or consult an expert to determine if the lower interest payments are worth the cost of refinancing in your particular situation. If you have other goals with your refinance — like eliminating mortgage insurance — you may still consider refinancing even if the interest rate savings are marginal relative to the cost of refinancing. Ultimately, whether it's worth refinancing depends on how long you plan to keep your loan. If you only plan to live in your home for another five years, the equation is very different than if you intend to pay the loan in full and retire in your home. ## Make your home equity work for you with a Cash-Out Refinance ### Work with a licensed Rocket Mortgage (NMLS #3030) representative today. [View Options](https://money.com/pr/ld03c610f49e?ap_referrer=%2Fhow-much-does-it-cost-to-refinance-mortgage%2F) ## FAQs about the cost of refinancing a mortgage ### What is the average cost to refinance a mortgage? The average cost to refinance a mortgage is about $5,000, but the cost varies significantly depending on factors including the loan balance that you’re refinancing. ### Why does mortgage refinance cost so much? Mortgage refinance is expensive because it’s similar to taking out a new loan on a home. You usually have to pay for a variety of costs and fees including loan origination fees, application fees, title service fees and appraisal fees. ### When will I break even on the costs of a mortgage refinance? The amount of time it will take to reach the break-even point depends on how much lower your new interest rate will be and how much your refinance costs total. You could break even in a matter of months with a great refinance deal, or it could take years. If you won’t break even at any point in the life of the loan, think hard about whether refinancing actually makes sense. ![](https://s3.consumersadvocate.org/prd/image/image/26689/medium_6508809f-2f35-4a12-891b-de71ec1923f4.png) A lower mortgage rate from Rocket Mortgage (NMLS #3030) could mean a lower monthly payment. 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