The Hidden Trap About Refinancing: Homeowners in These 5 States Are Paying Thousands More

When homeowners consider refinancing a loan, many don't take into account all the fees that go along with it.

The average refinance loan amount in the U.S. is now $330,622, according to a new study by LodeStar Software Solutions, a provider of mortgage closing cost data. The average total closing costs with recording and taxes are $2,207, or 0.67% of the refinance loan amount.

But in some states, closing costs are much higher.

Where closing costs to refinance are the highest

New York has the highest closing costs to refinance. The average refinance loan amount in The Empire State is $512,299. The average total closing costs with recording and taxes are $10,553, or 2.06% of the refinance loan amount.

"That percentage is more than double most other states in the report, with only a couple exceptions," said Ron Carvalho, LodeStar’s director of data.

Refinance closing costs are often structured differently from purchase closing costs, but in New York they can still be substantial depending on the loan size, property type, and county involved, says New York loan officer Salvatore Criscuolo of Movement Mortgage tells Realtor.com®.

"Borrowers still typically encounter lender fees, title charges, attorney fees, appraisal costs, escrows/prepaid taxes and insurance, recording fees, and, in some cases, mortgage tax considerations."

Florida has the second-highest refinance closing costs in the nation. The average refinance loan amount is $385,454, and the average total closing costs with recording and taxes are $5,250, or 1.36% of the refinance loan amount.

In third place is Maryland, where the average refinance loan amount is $391,616, and the average total closing costs with recording and taxes are $3,674, or 0.94% of the refinance loan amount.

"The state-by-state ranking largely aligns with what industry participants would expect," says Carvalho. "New York, Florida, and Maryland appearing at the top is not surprising, as refinance closing costs are heavily influenced by each state’s mortgage taxes, recording, and related fee structure."

Rounding out the top five are Texas and Hawaii.

The average refinance loan amount in Texas is $352,969, and the average total closing costs with recording and taxes are $3,405, or 0.96% of the refinance loan amount.

The average refinance loan amount is much higher in Hawaii, coming in at a steep $547,535. In the Aloha State, the average total closing costs with recording and taxes are $3,387, or 0.62% of the refinance loan amount.

Where closing costs to refinance are the lowest

On the other end of the spectrum, the top states where the average total closing costs for a refinance mortgage are the lowest are Missouri ($1,047), Wisconsin ($1,136), Indiana ($1,153), South Dakota ($1,202), Michigan ($1,300), and Arizona ($1,300).

Mortgage banker Charity Mathis of Flat Branch Home Loans in Joplin, MO, says low refinance closing costs are a major incentive for borrowers to refinance their home loans in Missouri.

"Refinances are pretty affordable—it just depends on a few factors such as credit score, or cash-out versus straight refi," she tells Realtor.com. "We can usually roll the closing costs into the refinance and keep it zero out of pocket."

How the data was calculated

To come up with its data, LodeStar used the average closing costs as the average fees, recordation charges, and transfer taxes required to close a typical refinance transaction in a geographical area, in addition to the following service types: settlement/closing/escrow fees and lender’s title policies.

The actual closing fees were taken from a sample of 202,059 refinance quotes, from Jan. 1 through Dec. 31, 2025. Loan amounts over $10 million were not considered for the study.

LodeStar calculated the percentage of the loan amount as the average total closing costs with recording fees and taxes included, divided by the average loan amount in a given geographical area.