The national average closing costs in 2021 for a single-family property refinance were up $88 YOY, but still less than 1% of the average refi loan amount, according to CoreLogic’s annual Refinance Closing Cost Report.
The average closing cost was $2,375, up 3.8% from 2020’s $2,287. The average refi loan amount was $304,909.
By contrast, the national average for purchase closing costs was $3,860.
The main difference in closing costs between the two are owner title insurance and inspection fees common for purchase transactions, but less often required for refis. Most third-party fees were still lower for refis.
“In 2021, homeowners were still able to get good deals on both interest rates and closing costs,” said Bob Jennings, executive, CoreLogic Underwriting Solutions.
“While refinance closing costs increased marginally, annual increases in fees still remain below the 7% average rate of inflation seen in 2021. Much of the cost control can be attributed to growing use of technology solutions by both lenders and settlement services providers, which enabled the industry to scale up capacity while holding the line on closing costs.”
The highest average closing costs, excluding speciality taxes, were seen in Hawaii ($4,730), New York ($4,679), Florida ($3,956), Texas ($3,588), and D.C. ($3,370).