Closing costs when refinancing

Cash due is not the same as the rate

A refinance comparison includes the closing costs you enter. You can leave them as separate amounts for appraisal, title, recording, and other charges. Financing those costs adds them to the new loan instead of requiring them in cash at closing. The cash-due line is what remains to be paid in cash.

Escrow deposits and prepaid taxes and insurance can be part of the cash due. The comparison does not treat those deposits as money that is lost when it measures whether the new loan is ahead, because they fund bills you would pay either way. Read the break-even labels on the calculator for the exact treatment.

Credits and cash-out

A lender credit reduces the cash financing charges and can reduce the amount financed. It is not extra savings on top of a lower rate. Cash-out increases the new loan, and the proceeds are money you receive rather than a reduction in cost.

None of these lines is a Loan Estimate or a Closing Disclosure. Leaving a fee at zero means it was not entered. It does not mean a lender will charge zero.

Needs review before launch. Tax treatment of points, credits, and cash-out is not calculated. Confirm that with a tax adviser before relying on it.

Where the break-even discussion lives

Closing costs are one input to the comparison. The guide on comparing two loans explains the simple break-even and the economic comparison, including why a lower payment can still cost more over the life of a longer loan.

Use the refinance calculator to change a fee and watch cash due, the new loan amount, and the break-even lines move together. The default example on this page is computed from that calculator, not typed by hand.

Try it in a calculator

Related guides

• How this refinance comparison works
• How mortgage payments are calculated
• What affects monthly mortgage costs?

Read the methodology

Written to explain how this site’s calculators work. Not a review by a licensed mortgage professional, and not a recommendation to borrow. These notes are not financial, tax, or legal advice.