Put loan costs in the closing-cost field
Origination, points, appraisal, and lender title charges are the usual costs of getting the new loan. The closing-cost worksheet can add those lines before you type one number into the refinance calculator.
A no-closing-cost offer often puts the cost in the rate or in the balance. A zero in the cost field is only honest if the quote really has no financed or upfront cost.
Leave prepaids out of break-even
An escrow deposit moves money you would pay into an account. It is not consumed the way an origination fee is.
If you include it, break-even gets longer and the refinance looks worse than the fee comparison alone.
| Item | Include? |
|---|---|
| Origination and points | Yes |
| Appraisal and lender title | Yes |
| Tax and insurance reserves | No, they are your bills |
Calculators
Related guides
Sources
Common questions
Should I finance the costs?
The refinance model assumes you do. Paying cash keeps the new loan smaller. Subtract the costs from the balance if you are testing that version.
Are points a refinance cost?
Yes. They also lower the rate. The points calculator is the clearer tool when points are the main question.