The cost of a refinance varies from one transaction to the next. Most of the financing costs are similar to that of a purchase mortgage. The usual difference being that in a refinance, some (or all) of the costs can be “rolled-into” the loan amount.
Essentially what happens is the homeowner replaces their current mortgage with a new mortgage that has a slightly higher balance. This increased principal balance can equate to some (or all) of the closing costs, depending on the situation. Ideally, this means the homeowner does not have to bring any “cash” to closing.
As a homeowner considering a refinance, your ability to come to closing without any money “out-of-pocket” will depend on the amount of equity you have in your home.
If you have any questions, ask your Loan Officer today!