The average closing costs are about 3% to 6% of your mortgage’s principal.

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In 2021 the average refinance closing costs in the US were $2,375 without taxes, according to data from financial tech company ClosingCorp. 
According to the Federal Reserve, typical closing costs are about 3% to 6% of your mortgage’s principal.
Your refinancing costs will vary based on where you live, the value of your home, and your new and old lender’s requirements. 

 

If rates have gone down since you first got your mortgage, refinancing your home can help save money on your monthly mortgage payment. It can lower your interest rate, or stretch your mortgage over several more years. 

But the refinancing process can be expensive. Refinancing essentially replaces your old mortgage with a new one, and that typically means paying closing costs all over again. 

How much does it cost to refinance?

When you refinance, you may pay a little less than what you paid on your original loan. According to data from ClosingCorp, average closing costs on a mortgage refinance were $2,375 in 2021, excluding any recordation or other specialty taxes. ClosingCorp didn’t disclose the national average refinance closing costs with taxes for 2021.

By contrast, the average home purchase closing costs without taxes were $3,860 in 2021. This means that borrowers who are refinancing pay a little less for their mortgages than those who are purchasing a new home.

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Source:: Business Insider

      

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