Understand the fees, the math, and whether it’s worth it.

Refinancing your mortgage can be a smart financial move — lowering your payment, removing mortgage insurance, or helping you reach long-term goals faster.

👉 But one of the biggest questions we hear is:
“What are the actual costs to refinance, and will I get that money back?”

Let’s break down what goes into the cost of a refinance, how it’s paid, and how to calculate your break-even point so you can make a smart decision with total clarity.

---

✅ Typical Refinance Closing Costs (2025)

On average, you can expect refinance costs to range between 2%–6% of your loan amount, depending on loan size, state, and lender.

Here’s a breakdown of common fees:

Fee Type	Typical Cost
Application / Origination	$500–$4,500
Appraisal (if required)	$450–$900
Title / Escrow Fees	$1,000–$4,500
Credit Report / Tax Service	$50–$150
Recording / County Fees	$100–$500
Prepaid Interest	Varies by closing date
Government Fees	FHA, VA, etc. (if applicable)
Total Estimate	$3,000–$7,000+

📘 We’ll provide a personalized Loan Estimate before you commit to anything — so you know exactly what to expect.

---

🧾 How Are Refinance Costs Paid?

You have 3 options:

1. Pay Out of Pocket at Closing

Bring funds to closing like you would for a purchase. Rare, but sometimes preferred if you’re lowering your loan balance.

2. Roll Them Into the Loan

Add the costs to your new mortgage balance. This is most common and keeps upfront costs low — but slightly increases your loan amount.

3. Lender-Paid or “No Closing Cost” Option

You accept a slightly higher interest rate, and the lender pays the closing costs on your behalf. Works well if you’re rate-sensitive but plan to refinance again or sell within 3–5 years.

💡 We’ll walk you through all three options so you can choose what fits your strategy best.

---

🔍 What’s a Break-Even Point?

This is how long it takes to recoup the cost of your refinance through your monthly savings.

Example:

• Refi cost: $5,000
• Monthly savings: $200
• Break-even: 25 months

If you plan to stay in the home longer than that? You’re likely saving money.

✅ PRMI provides custom break-even analysis on every refinance proposal.

---

🧠 When Refinance Costs Might Be Worth It

Even with a cost of $3,000–$9,000+, refinancing can be very worthwhile if you:

• Drop your interest rate significantly
• Remove monthly PMI or MIP
• Consolidate high-interest debt
• Shorten your loan term (pay off faster)
• Improve your cash flow in a tight budget

📘 If you save $250/month, that’s $3,000/year — your breakeven could be just over a year.

---

🏢 Why PRMI?

At PRMI, we:

• Offer full transparency on costs and savings
• Help you choose between paying vs. rolling costs
• Compare zero-cost refinance options
• Calculate your exact break-even point so you can make a smart call

No pressure, just math and clarity.

---

👇 Want to See the Real Cost and Savings of a Refinance?

We’ll give you an exact quote, break down every dollar, and show you how fast you’ll get it back.