Can I Get a 15-year Refinance Without Paying for Closing Costs?

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Published April 14, 2022

The closing costs associated with a 15-year refinance can be tricky to pin down. There are options for borrowers to put off closing costs, but some prefer to tackle them head-on. The cost of refinancing a mortgage loan while reducing or eliminating closing costs can be a solid strategy for financial success.

What are the closing costs of a 15-year mortgage loan refinance?

15-year refinance closing costs include all of the charges, costs, services, and fees you'll pay when buying or refinancing a property. Typical closing costs for a 2022 mortgage refinance average between 2 and 5% of the total loan amount.

If you want to minimize closing costs while maximizing interest savings, today's 15-year refinance deals can help you do it. If you're unsure about the closing costs you'll need to pay, one of our dedicated mortgage consultants can work with you to secure the best rate. In fact, you can close on a mortgage refinance in some cases without paying closing costs upfront.

Typical costs you'll be charged at closing

In 2021, the average closing costs for a single-family home were around $6,800 and included the following fees, taxes, and expenses:

Loan application fee between $75 and $300
Credit check fee of $25
Appraisal fee between $500 and $1,000 or more
Surveyor fees between $150 and $400
Attorneys' fees between $500 and $1,000
Recording fees between $25 and $250
Processing and underwriting fees from $300 to $900 each
Title search and title insurance costs from $300 to $2,000 or more
Mortgage loan origination fee of one percent of the total loan
Prepaid taxes and homeowners' insurance
Additional charges that vary by location

Costs that are not negotiable

Non-negotiable costs include fees charged by third parties like surveyors, lawyers, and appraisers. As the borrower, you will be responsible for paying these fees.

When to pay closing costs in full

If possible, pay off all up-front costs of a refinance. This can significantly reduce the amount you'll pay over time. Some homeowners opt to do this with extracted home equity in the form of a HELOC, a home equity loan, or a cash-out refinance. Doing this will help you reduce costs overall.

On the other hand, if you have limited savings but want to lock in a low-interest rate, deferring the closing costs of a 15-year refinance until your financial position strengthens will give you more options down the road.

Put your home equity to work

You may qualify for a line of credit equal to the equity value of your home. An equity line of credit is considered a second mortgage, and it works like a credit card.

Your credit limit will be equal to the total cash value of your property. Therefore, you will have higher monthly payments, but your interest rate will stay the same.

Ask the lender to cover the closing costs of a 15-year refinance for you

Some lenders will cover your closing costs if you pay more in interest or if you increase the principal loan amount. The fees charged are used to cover the products and services provided.

How do lenders determine the closing costs of a 15-year refinance?

Expenses and closing costs of a 15-year refinance are determined by a few key variables:

Location of the property to be refinanced
The cost and amount of your loan
Whether you are using equity financing
Your lender or lending partner

Should I pay the closing costs 15-year refinance charges now or later?

Before you decide, remember that 15-year refinance closing costs are deferred, not free. If you take longer to pay those fees, you will end up paying more over time. Paying additional costs over the long run just to avoid closing costs up-front will cost you more money overall.

If you're unsure where to start, schedule an appointment to discuss your personal financial goals and needs. Our mortgage consultants can work with you to secure the refinance closing that works best for your home.