How to Calculate Your Refinance Costs Before You Start

Sponsored Content: Refinancing your home can help you reduce your monthly payment, get a lower interest rate, change your term, and even let you tap your equity for cash. 

However, like purchase mortgages, you'll have to pay closing costs to get a refinance with most lenders. 

In this article, we'll review some typical refinancing closing costs and what you might pay. Then, we'll show you how to use the refinance calculator from Discover® to see if refinancing is the right decision for your financial goals. 

Common Refinancing Costs 

For most, closing costs can range from 2-6% of their refinancing loan amount.  

For example, a $100,000 refinancing loan will likely come with $2,000-$6,000 in closing costs.  

However, some lenders like Discover Home Loans offer refinancing with no closing costs. 

Below are a few fees built into that typical closing cost amount. Keep in mind that fees and their amounts may differ between lenders and vary by local laws. 

Application Fee 

Application fees can range from $75-$500, although some lenders don't charge them. They are illegal in some states, too. 

Origination/Underwriting Fee 

Origination/underwriting fees usually cost 0%-1.5% of the loan amount. This generally covers the cost of underwriting and other services needed to set up the loan. 


Appraisals can vary in cost, but a good range is $300-$400 for single-family homes. An appraiser is hired by the lender to approximate the home's value, but you typically have to pay the cost of the appraisal. 

Credit Report Fee 

The credit report fee usually costs between $30-$50. Each credit report costs the lender money, and they often pull reports from all three credit bureaus to get a comprehensive view of your creditworthiness. 

Title Search/Insurance Fee 

Title search and insurance fees can cost $400-$900. This covers the cost of dealing with any potential ownership problems that come up while going through the refinancing process. 

A Refinance Calculator: The Best Way to Calculate Your Refinancing Costs 

Closing costs can add up, but the cost doesn't matter much if you save more money in the long run by refinancing. 

With a refinance calculator like the one from Discover Home Loans, you can calculate your savings over time and compare that against the closing costs. If you save more than you pay in costs, it might be worth it to refinance. 

Source: Discover Home Loans

About Discover Home Loans

Discover Home Loans provides home equity loans and mortgage refinance options with a range of benefits for qualified homeowners. Find options that fit within your budget at ©2023 Discover Bank, Member FDIC | NMLS ID 684042


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