Are Closing Costs Different for a Mortgage Refinance?

Closing Disclosure Form

Refinancing a mortgage is an action many homeowners take, for a variety of reasons. Some choose to refinance to enjoy a better loan rate, while others wish to cash in some of the equity in their home. Still, others refinance to reduce the length of their mortgage, or change to a different mortgage product altogether. Whatever the reason may be, it’s important to know the types of closing costs that may accompany a mortgage refinance.

Closing Fees for a Refinance

The closing costs required for a mortgage refinance vary by lender, interest rates and loan amount, among other factors. However, the fees listed below are those most common to the refinancing process. Keep in mind, you may still need a third-party home appraisal to refinance your loan, depending on the type of mortgage.

  • Lender fees
  • Credit fees
  • Points (optional)
  • Home appraisal (if applicable)
  • Taxes
  • Insurance
  • Tile and escrow fees

 Know Before You Sign

In any real estate transaction, it’s always prudent to ask questions, do your research and know what your financial responsibilities will be before you sign. Closing fees typically are rolled into your new mortgage. In some cases, lenders may offer to cover a portion of closing costs allowable by law on your behalf. Lenders are required to submit to you a Closing Disclosure (CD) Form three business days prior to your closing. The CD form contains final loan details and lists the closing costs you can expect to pay. It’s very important to carefully review the document, and ask any final questions you may have before you sign.


Have questions about the closing process for refinancing a mortgage? Contact our friendly team today!




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