How do you calculate closing costs on a refinance?
Refinance closing costs run 2–5% of the loan amount: lender fees, appraisal, title (lender's policy again), and recording — but no transfer tax in most states and no owner's title policy. On a $300,000 refi, expect $4,000–$9,000, with a break-even of monthly savings divided into that cost.
Refi closing worksheet: $300,000 loan
| Item | Typical cost | Note |
|---|---|---|
| Lender fees (origination, processing) | $1,500–$3,000 | Shop these hardest |
| Appraisal (or waiver) | $0–$600 | Waivers common on strong files |
| Lender's title policy (reissue rate) | $400–$900 | Ask for the reissue discount |
| Recording + government | $100–$300 | NY mortgage tax is the big exception |
| Total | $4,000–$9,000 | Break-even = cost ÷ monthly savings |
How to read this table
- Total sits at the top of the table ($4,000–$9,000) — break-even = cost ÷ monthly savings. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
- Appraisal (or waiver) anchors the bottom ($0–$600) — waivers common on strong files. Treat this as the conservative case you should still be profitable at.
- Most rows are ranges, not single figures. The low end usually reflects a weaker month, a softer audience geography, or an unoptimised setup; the high end reflects a well-run, well-targeted operation of the same size.
- With 5 reference points in the "refi closing worksheet: $300,000 loan" table, the fastest way to use this page is to find the closest row, take its typical cost, then stress-test it ±30% before you build a plan on it.
Context
The only question that matters is break-even: $6,000 of costs against $200/month of savings breaks even in 30 months — fine if you'll keep the home 5+ years, pointless if you'll sell in 2. 'No-closing-cost' refis fold the costs into a higher rate; compare break-evens both ways. Three refi-specific savings: appraisal waivers (Fannie/Freddie offer them on strong files), title reissue rates (20–40% off if your current policy is recent), and New York's CEMA to dodge the mortgage recording tax.
What moves this number
Financing terms
Rate, down payment and amortisation drive cash-on-cash return more than purchase price does. The same building can cash-flow or bleed depending on the loan.
True operating expense ratio
Management, insurance, tax, maintenance, vacancy and capital reserve typically consume 35–50% of gross rent. Models that skip reserves overstate returns badly.
Vacancy and turnover
One 45-day vacancy plus a turn can erase a year of thin cash flow. Underwrite 5–8% vacancy even in tight markets.
Local regulation
Rent rules, short-term rental caps and licensing requirements change the achievable revenue of an identical property between neighbouring cities.
Methodology
Cost ranges from 2025–2026 national refi fee data; break-even = total costs ÷ monthly payment reduction, ignoring time value for simplicity.
Assumptions and caveats
- Returns exclude appreciation and principal paydown unless a row states otherwise.
- Local tax, insurance and regulation can move these figures by several points in either direction.
- This page was last reviewed on 2026-10-01. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
- Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.
Frequently asked questions
How do you calculate closing costs on a refinance?
Refinance closing costs run 2–5% of the loan amount: lender fees, appraisal, title (lender's policy again), and recording — but no transfer tax in most states and no owner's title policy. On a $300,000 refi, expect $4,000–$9,000, with a break-even of monthly savings divided into that cost.
Which option pays the most in the refi closing worksheet: $300,000 loan table?
Total, at $4,000–$9,000 (Break-even = cost ÷ monthly savings). That row represents the strongest case in this dataset, so use it as an upper bound rather than an expectation.
What is a realistic low-end figure?
Appraisal (or waiver) at $0–$600 (Waivers common on strong files). Plan your costs so the low end still works, then treat anything above it as upside.
Where do these numbers come from?
Cost ranges from 2025–2026 national refi fee data; break-even = total costs ÷ monthly payment reduction, ignoring time value for simplicity.
How can I estimate my own number instead of using a benchmark?
Use the Closing Costs Calculator on RevenueLab — it takes your own inputs and returns a figure specific to your setup, which is always more accurate than a published range.
Model your own numbers
Related reading
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Last updated 2026-10-01.