How much does it cost to refinance a mortgage?

Typical charges may include lender fees, appraisal, credit, title or settlement services, recording, and prepaid interest. Escrow deposits for taxes and insurance may also appear, while any balance in the old escrow account is generally handled separately by the prior servicer.

Some refinances are advertised as no-cost. Usually, the costs are covered by a lender credit tied to a higher rate or added to the loan amount when allowed. That can reduce cash due at closing but may increase long-term cost.

Calculate the break-even period by comparing the true cost with the expected monthly benefit, while also accounting for any term reset or cash received.