Lender charges
Origination, underwriting, processing, discount points, appraisal, and other charges can vary by loan and lender.
Refinance costs
A lower mortgage rate can still be a bad refinance if the costs do not make sense.
Refinance costs should be measured against monthly savings, loan balance, expected holding period, and the long-term cost of the new mortgage.
Title and settlement
Refinancing can include title, escrow, settlement, recording, and related fees.
Prepaid items
Interest, taxes, insurance, and escrow deposits may affect cash needed at closing.
Financed costs
Some costs may be rolled into the new loan, increasing principal while reducing immediate cash outlay.
Lender credits
A higher rate may sometimes be paired with lender credits that offset certain closing costs.
Break-even
Compare total costs with monthly savings to estimate how long it takes to recover the refinance expense.