Loan and lender charges
Possible charges include origination, underwriting, processing, credit, flood determination, tax service and points when selected. The Loan Estimate identifies the disclosed categories for the proposed loan.
Compare lender charges together with the rate and any lender credit rather than treating one item in isolation.
Property, title and government charges
A refinance may involve appraisal or other valuation costs, title search or insurance, settlement services, recording and applicable government charges.
Requirements and available provider choices vary by property, lien history and program.
Prepaid items and escrow funding are different from lender fees
Prepaid interest, homeowners or flood insurance and initial escrow deposits can affect cash needed even though they are not all lender compensation.
The prior servicer may separately return a remaining escrow balance after payoff under its process; do not assume that future refund will be available for the refinance closing.
No-closing-cost does not mean cost-free
A lender credit may offset upfront charges in exchange for different pricing, or permitted costs may be added to the new balance. Either method changes the economics of the loan.
Compare cash due, new balance, rate structure and the expected time needed to recover costs.