Common cost categories
Depending on the transaction, costs may include lender-related charges, appraisal, title or settlement services, recording, prepaid items, escrow funding, and discount points where applicable.
Gross equity, new loan, and net cash
Gross equity is the difference between a home’s value and the existing mortgage balance. A new loan amount may include a payoff and eligible proceeds. Net cash received may be lower after applicable costs and adjustments.
Avoid one-size-fits-all percentages
Costs vary by location, property, loan structure, provider, and program. A personalized estimate is more useful than assuming a universal percentage.
Frequently asked questions
Can closing costs be included in a refinance?
Whether and how costs are handled depends on the program, loan structure, and provider guidelines.
Does more equity always mean more net cash?
No. Existing payoff, LTV limits, closing costs, and qualification factors can all affect estimated proceeds.