Mortgage Refinance by State: Costs and Taxes Guide

How closing costs, state taxes, recording fees and cash-out rules differ across the US, with notes on California, Texas, Florida and New York and a checklist for any other state.

Why refinance costs depend on the state

The interest rate on a refinance is set by the market and your credit, but a large part of the closing cost is set by the state and county where the home is. States differ in the taxes they charge on new mortgages, the fees to record documents, whether title insurance rates are regulated, whether a lawyer is customary at closing, and the rules on cash-out loans. Two borrowers with the same rate and loan can pay very different costs just because of where they live.

This guide covers four large states, California, Texas, Florida and New York, and gives a way to check any other state. The figures are typical rules of thumb, not quotes. Your Loan Estimate, from a lender or a local title company, is the only reliable figure, and the free Refinance Closing Costs Calculator lets you enter it line by line.

The cost items that vary by state

Item	What it is	Why it varies
Mortgage recording tax	Tax on recording a new mortgage	A few states charge it, at a rate set by state or county
Documentary stamp and intangible taxes	Taxes on the note and the mortgage	Charged in some states, such as Florida
Recording fees	County charge to file documents	Set by each county
Title insurance and search	Protects the lender against title problems	Rates are regulated in some states and set by the market in others
Attorney or escrow fees	Closing and legal work	Some states usually involve an attorney, others an escrow company
Cash-out rules	Limits on how much you can borrow against the home	Some states cap or condition cash-out loans
Property tax effects	Reassessment and escrow amounts	Depends on local assessment rules

Use this table as a checklist when you ask for quotes: for each item, ask the lender or title company whether it applies in your county and how much it is.

California

California does not charge a state mortgage recording tax on a refinance, so the main government costs are county recording fees. Most of the cost is in lender fees, appraisal, escrow and title insurance. Escrow companies, not attorneys, usually handle the closing, and title insurance and escrow fees can be a large part of the total, particularly on high-value homes, since some are priced on the loan amount.

Property tax is another point. A refinance does not normally trigger a reassessment of the property under California's rules, but check with your county assessor if anything about ownership changes at the same time. Because loan sizes are large, the percentage-based fees add up quickly, so compare lender fees and ask whether any title or escrow charges can be discounted for a refinance with the same company.

Texas

Texas has no state mortgage recording tax, and recording fees are county charges. Its most distinctive feature for refinancing is the rules on home equity. A cash-out refinance on a Texas home is generally treated as a home equity loan, and it carries conditions, such as a limit on the loan-to-value of about 80%, a waiting period after the application and restrictions on how often you can do it. If you only change the rate and term without taking cash out, the rules are simpler.

Title insurance rates in Texas are set by the state, so title costs are similar between companies, which makes it more useful to compare lender fees. Property taxes are high in many Texas counties and are usually paid through escrow, so your escrow deposit at closing can be large. It is a cash need, not a cost, but you should plan for it. The Cash-Out Refinance Calculator lets you set the loan-to-value limit to match.

Florida

Florida charges two taxes on a new mortgage that many states do not. A documentary stamp tax applies to the promissory note, at a rate of about 35 cents for each 100 of the loan, and a non-recurring intangible tax applies to the mortgage, at about 0.2% of the loan. On a 300,000 loan, that is roughly 1,050 and 600, so about 1,650 in taxes, before other fees. These are among the larger government charges in any state, so they can make a refinance with a small saving harder to justify.

Title insurance rates are set by the state. Homeowners insurance and flood insurance are big parts of the monthly cost, and escrow deposits for them can be large at closing. Because the taxes scale with the loan, rolling costs into the loan raises them slightly. The Break-Even Calculator helps you test whether a refinance still pays with these taxes included.

New York

New York charges a mortgage recording tax, at a rate that varies by county and the size of the loan, and in the New York City area it is relatively high. Many refinances also involve an attorney. A common way to cut the tax on a refinance is for the new lender to take an assignment of your existing mortgage and combine it with the new loan in a consolidation, extension and modification agreement. Under this arrangement the tax is generally charged only on the new money, not on the whole loan, though the lender may charge fees for doing it.

Ask any New York lender whether it offers this arrangement, and whether the savings on tax are larger than the extra legal and processing fees. For a refinance with no cash out, the tax saving can be large. Condominium and cooperative apartments follow different rules, and co-ops involve other costs, so use quotes specific to your property.

Checking any other state

Ask your lender for the Loan Estimate and read Section A to C, which show lender, third-party and government charges.
Look for state or county taxes in Section E, taxes and other government fees.
Ask whether title insurance rates are regulated in your state and whether you may shop for the title company.
Ask whether an attorney is needed and what the fee is.
Ask whether there are limits on cash-out refinancing in your state.
Ask the county recorder's office for the recording fee schedule.

Your state attorney general, housing agency or real estate commission may also publish a guide to closing costs. The CFPB's guidance on the Loan Estimate explains how to read each section.

Worked example: the same refinance in different states

ExampleA homeowner refinances 300,000 and the lender and third-party fees come to about 5,000 in each state. The state taxes are about 0 in California and Texas, about 1,650 in Florida and an amount in New York that depends on the county and on whether the consolidation method is used.

With a monthly saving of 240, the 5,000 of fees gives a break-even of about 21 months. In Florida the extra 1,650 of taxes lifts the cost to about 6,650 and the break-even to about 28 months. The same refinance is worth doing in both places for someone who stays five years, but not for someone who might move in two. That is why the state matters to the answer, and why the Mortgage Refinance Calculator lets you add every cost.

Reading the state sections of your Loan Estimate

The Loan Estimate is the same form in every state, which makes it the best tool for comparing costs. Section A shows the lender's own charges. Section B shows services you cannot shop for, such as the appraisal. Section C shows services you can shop for, which often include title and settlement work. Section E shows taxes and other government fees, where state mortgage taxes and recording fees appear. Compare Section E across lenders: it should be similar, since it reflects state and county charges, and large differences are a sign to ask questions.

Sections F and G show prepaid items and escrow deposits, which vary most by state because of property tax and insurance costs. They are not a cost of the loan, but they are cash you need on closing day, and the Closing Costs Calculator shows them separately so you can plan for both.

How to keep state costs down

Shop lender fees across three or more lenders, because they do not depend on the state.
Where title insurance is not set by the state, ask for a reissue or refinance rate, since some companies discount it if a recent policy exists.
In states with a mortgage tax, ask about methods that tax only the new money.
Avoid rolling a large amount of costs into the loan in states where taxes scale with the loan.
Compare no-cost options and lender credits against points.
Time your closing to reduce prepaid interest.

Sources

Consumer Financial Protection Bureau, "What are closing costs?" and guidance on reading a Loan Estimate (consumerfinance.gov).
Florida Department of Revenue, documentary stamp tax and intangible tax on mortgages (floridarevenue.com).
New York State Department of Taxation and Finance, mortgage recording tax (tax.ny.gov).
Texas Department of Insurance, title insurance rates, and Texas Office of Consumer Credit Commissioner, home equity lending (tdi.texas.gov, occc.texas.gov).
California Department of Real Estate and county recorder offices, recording information (dre.ca.gov).

Frequently asked questions

Do refinance costs differ by state?

Yes. Lender fees are similar everywhere, but taxes, recording fees, title insurance pricing, attorney use and cash-out rules differ by state and county.

Which states charge a mortgage tax on a refinance?

A number of states charge a mortgage recording tax or similar, including Florida (documentary stamp and intangible taxes) and New York. California and Texas do not charge a state mortgage recording tax. Check your own state and county.

How much does Florida charge in taxes on a refinance?

Roughly 35 cents per 100 of the loan in documentary stamp tax on the note and about 0.2% of the loan in intangible tax on the mortgage, which is about 1,650 on a 300,000 loan. Confirm the current rates with your title company.

How can I reduce the mortgage tax in New York?

Many lenders offer to assign your existing mortgage and combine it with the new loan so that the tax is charged mostly on the new money. Ask whether this is available and what it costs.

Are there special rules for cash-out refinancing in Texas?

Yes. A cash-out refinance of a Texas home is generally treated as a home equity loan, with conditions such as a loan-to-value limit of about 80% and a waiting period. A rate-and-term refinance is simpler.

Is title insurance regulated by the state?

In some states, such as Texas and Florida, the rates are set by the state. In others they are set by the market. Ask whether you can shop for title services.

Do I need an attorney to refinance?

It depends on the state and the lender. Some states commonly use an attorney at closing, and others use an escrow or title company. Your Loan Estimate shows who is charging what.

Does refinancing trigger a property tax reassessment?

Usually not, but rules vary by state and county. Ask the local assessor if anything else changes at the same time.

Why is my escrow deposit so high at closing?

Escrow deposits cover property tax and insurance in advance, and they are higher in states with high property taxes or insurance costs. They are your money, not a cost of the loan.

Is this guide a quote for my state?

No. The figures are examples and rules of thumb. Get a Loan Estimate from your lender, and check rates and fees with your title company and county.

This guide is general information about mortgage refinancing costs in the United States. It is not financial, tax, legal or lending advice. Tax rates, fees and rules change and differ by county and property, and the figures given are typical examples, not quotes. Confirm current amounts with your lender, a local title or escrow company and your county before you decide.

Mortgage Refinance Calculator by State: Costs, Taxes and Rates