The national average closing costs for a single-family residential property refinance last year were $3,398, according to the first national refinance closing cost report from ClosingCorp. In contrast, closing costs for the average home purchase in 2020 were $6,087.
The major difference, according to the company, is that most states do not impose transfer and other local taxes on refinances. Also, owner title insurance and a number of inspection fees are typically not required for a refinance transaction.
The national average tax bill at closing was $1,111 for a refinance as compared to $2,617 for a purchase transaction.
Dori Daganhardt, chief data officer of ClosingCorp, said: “Our first national refinance report analyzed data on more than 3.4 million single-family refinance transactions that ran through our Fees platform last year. Adjusting for the fact that borrowers shopped multiple lenders and other scenarios, this was nearly 40 percent of the total 2020 refinance market. We are reporting ‘market-specific’ rates and fees not just network averages charged by the most active settlement services providers in each geographic area.”
NEXTmortgagenews covered the company’s purchase money closing cost report earlier this week. For more information about this data, or for the full report which offers additional details, please visit: closing.com/closingcosttrends.