Refinance closing costs explained line by line

These are charges from the lender for making the loan. They're often listed under origination charges on your Loan Estimate.

• Origination fee: the lender's charge to set up the loan. Some lenders split it into underwriting or processing fees.
• Discount points: optional. You pay upfront to lower your rate.
• Credit report fee: the cost of pulling your credit.
• Flood certification and tax service fees: checks the lender orders on your property.

These pay for services from companies other than the lender.

• Appraisal: an estimate of your home's value. Not every refinance needs one.
• Title search: a check of public records for liens or problems with ownership.
• Lender's title insurance: protects the lender if a title problem appears later.
• Settlement agent fee: the company that runs your closing and handles the money.
• Survey, if one is required.

Your county or city charges a fee to record your new mortgage or deed of trust. Some places also charge a recordation or mortgage tax. These amounts depend on where your home is and your loan amount, so they vary a lot from place to place.

These aren't fees for the loan. They're money set aside for your own bills.

Prepaid interest covers the days from closing to the end of that month. If your loan has an escrow account, you also make an opening deposit toward future property taxes and homeowners insurance. On a refinance, your old servicer usually refunds your old escrow balance after the old loan is paid off.

When a loan meets the offer terms, CapCenter pays for or waives these closing costs, to the extent they apply:

• Origination, credit report, flood certification, tax service, title search, wire and delivery fees
• Lender's title insurance, survey, settlement agent and appraisal fees, when required and provided by an approved agent

CapCenter doesn't cover prepaid mortgage interest or escrow deposits. Depending on your property's location, you may be responsible for government fees and taxes to record your mortgage or deed of trust. Other charges may apply depending on your loan. Your loan amount must be greater than $100,000 on a first mortgage to qualify for the offer. See Offer details for the full terms.

Ask each lender for a Loan Estimate on the same day, for the same loan amount and term. Compare section A (origination charges) and the services you can and can't shop for. Then look at the rate and APR together. A low rate with high fees or points may cost more overall than it seems.