According to CoreLogic’s ClosingCorp 2021 refinance closing cost report, the national average closing costs for a single-family property refi was $2,375, up 3.8 percent year-over-year. That was still less than 1 percent of the average refi loan amount, which was $304,909.
By contrast, ClosingCorp’s purchase closing cost report showed purchase mortgage closing costs increased 13.4 percent year-over-year to an average of $3,860, excluding transfer and specialty taxes.
“In 2021, homeowners were still able to get good deals on both interest rates and closing costs,” CoreLogic Underwriting Solutions Executive Bob Jennings said in a release. “While refinance closing costs increased marginally, annual increases in fees still remain below the 7 percent average rate of inflation seen in 2021. Much of the cost control can be attributed to growing use of technology solutions by both lenders and settlement services providers, which enabled the industry to scale up capacity while holding the line on closing costs.”
The major differences between average closing costs for refis versus home purchases is that owner title insurance and several inspection fees common for purchase transactions are not typically required for refinances, according to CoreLogic. Still, most third-party fees, including lender title, settlement service and land surveys, were also lower for refis.
The states with the highest average closing costs, excluding specialty taxes, were Hawaii ($4,730), New York ($4,679), Florida ($3,956), Texas ($3,588) and District of Columbia ($3,370).
The states with the highest closing costs, including taxes, were New York ($10,084), Pennsylvania ($7,614), Delaware ($7,223), Florida ($5,821) and California ($5,762).
Metros with the highest average fees without taxes include Key West, Fla. ($4,922); Arcadia, Fla. ($4,756) and Kahului-Wailuku-Lahaina, Hawaii ($4,651).
Refi cost calculations include lender’s title policy, appraisal, settlement, recording fees and various state and local taxes.