How Much Does It Cost to Refinance? Texas Fee Guide

How much does it cost to refinance? Average closing costs

Herring’s mortgage refinance page puts refinance closing costs at 2% to 6% of the loan balance. Here’s what that range means at common Texas loan sizes:

Two things drive where you fall in that range. The first is fixed-dollar fees, like the appraisal and recording, which take up a larger share of a small loan. The second is optional choices, like buying discount points or setting up a new escrow account. Prepaid interest and escrow deposits aren’t really costs of the refinance. They’re money you would spend anyway, and your old servicer refunds the balance of your old escrow account after payoff.

Itemized refinance fees

Your Loan Estimate groups costs into lender charges, third-party services, taxes and government fees, and prepaids. The CFPB’s Loan Estimate explainer shows where each item appears on the form. Here’s a typical breakdown for a $300,000 rate-and-term refinance in Texas:

Herring’s closing cost calculator lets you plug in your own loan amount and county.

Texas-specific costs: title insurance rates, reissue credit and survey

Title insurance rates are set by the state

In Texas, the Texas Department of Insurance sets title insurance premiums. Every title company charges the same base premium for the same policy amount. Under the rates effective March 1, 2026, the premium on a policy over $100,000 is $780 plus $4.94 for every $1,000 above $100,000:

• $200,000 loan policy: $1,274
• $300,000 loan policy: $1,768
• $400,000 loan policy: $2,262

The Texas refinance title credit (Rate Rule R-8)

When the new loan pays off a loan that already has a title policy, TDI Rate Rule R-8 requires a credit. The credit is figured on the lesser of your payoff balance or the original loan amount:

• 50% of that premium if the existing loan policy is four years old or less
• 25% if it’s more than four but less than eight years old
• No credit after eight years

Example: You refinance a $280,000 payoff into a new $300,000 loan, and your current loan closed in 2023. The base premium on $280,000 is $1,669, so the 50% credit is about $835. Your new policy costs about $933 instead of $1,768. If your loan were five years old, the credit would be about $417, and the policy would cost about $1,351. Ask the title company to confirm the credit appears on your Closing Disclosure.

Survey

Many Texas lenders and title companies will accept your existing survey with a TDI Form T-47 Residential Real Property Affidavit, as long as you haven’t added fences, pools or buildings since the survey. That can save you the cost of a new survey.

Texas cash-out refinances: the 2% fee cap

If you take cash out against your Texas homestead, the loan becomes a Section 50(a)(6) home equity loan. Under the Texas Constitution, lender and third-party fees are capped at 2% of the principal. Interest, bona fide discount points, the appraisal, the survey, the title base premium and certain title exam reports don’t count toward the cap. See our comparison of a HELOC vs. cash-out refinance in Texas.

No-closing-cost refinances and lender credits

A “no-closing-cost” refinance doesn’t make the costs disappear. Someone still pays them, in one of two ways:

1. Lender credits. You accept a higher interest rate, and the lender pays some or all of your closing costs. The CFPB describes lender credits as the mirror image of discount points: lower costs now in exchange for a higher rate.
2. Rolling costs into the loan. The costs are added to your new balance. Fannie Mae allows closing costs, points and prepaids to be financed in a limited cash-out (rate-and-term) refinance (Selling Guide B2-1.3-02), as long as the loan stays within LTV limits.

When it makes sense: you expect to sell or refinance within a few years, so you won’t keep the higher rate long enough for it to cost more than paying fees upfront. When it doesn’t: you plan to keep the loan for many years. A rate even 0.25% higher, paid for a decade, usually costs more than the fees would have.

How to calculate your break-even point

Break-even (months) = total refinance costs ÷ monthly savings

Example: You owe $300,000 at 7.99%, a rate locked near the 2023 peak, with principal and interest of $2,199. You refinance to an illustrative 7.125% for 30 years, which brings principal and interest to $2,021.

• Monthly savings: $2,199 − $2,021 = $178
• Closing costs, excluding prepaids: $6,500
• Break-even: $6,500 ÷ $178 = about 37 months

If you’ll stay in the home and keep the loan for more than about three years, this refinance pays for itself. Keep in mind that restarting a 30-year term lowers the payment partly by stretching out repayment. To compare fairly, also look at total interest over the time you expect to keep the loan, or refinance into a term that matches your remaining years. Herring’s refinance calculator runs both views.

Ways to cut refinance costs

• Compare Loan Estimates. Lender fees and rates vary, while Texas title premiums don’t. Compare Section A (origination charges) and the rate side by side.
• Claim your R-8 title credit. Have a copy of your existing loan policy ready so the credit isn’t missed.
• Reuse your survey with a T-47 affidavit if nothing has changed on the property.
• Skip points unless you’ll stay past break-even. Each point costs 1% of the loan.
• Time your closing. Prepaid interest runs from closing to the end of the month. Closing late in the month reduces the cash you need at closing, though not your total interest.
• Refinancing FHA to FHA? HUD refunds part of your original upfront MIP if you refinance into a new FHA loan within 3 years. The refund starts at 80% in month 1 and declines to 10% by month 36.
• Avoid unnecessary cash-out. Fannie Mae typically prices cash-out refinances higher than rate-and-term refinances, and in Texas cash-out triggers the 50(a)(6) rules.

Paying down principal is another way to cut lifetime interest without paying any closing costs. See what happens if you make 2 extra mortgage payments a year.

Is refinancing worth it right now?

As of October 15, 2026, Freddie Mac’s Primary Mortgage Market Survey shows the 30-year fixed averaging 7.40% and the 15-year averaging 6.71%. Herring’s Texas refinance page suggests looking for a new fixed rate at least one percentage point below your current rate before refinancing just for rate. Smaller drops rarely cover closing costs. A refinance can still be worth it for reasons other than rate:

• Removing FHA mortgage insurance by moving to a conventional loan once you have 20% equity
• Leaving an adjustable-rate mortgage before it resets higher
• Shortening your term to 15 years to cut total interest
• Removing a co-borrower after a divorce
• Converting a Texas cash-out loan to a regular mortgage under Section 50(f)(2). See our rate-and-term refinance guide.

For the step-by-step process, read how to refinance a mortgage in Texas. For purchase-side fees, see typical closing costs in Texas.

Herring Bank NMLS #415783 | Member FDIC | Equal Housing Lender. This article is for educational purposes only and does not constitute financial, legal or tax advice. It is not a commitment to lend. Rates, payments and fees shown are examples, not offers. Title premiums are based on TDI rates effective March 1, 2026 and may change. Loan programs, rates and eligibility requirements are subject to change without notice.