But, if any of these closing costs are deductible, either annually during my remaining time in the house, or (preferably) in this year, when the refi happens, that might change the decision.
loan origination charge (1% of amount financed) processing fees, $470 underwriting fees, $425 appraisal fee, $475 credit report, $150 reinspection fee, $125 abstract or (of?) title search fees, $310 attorney fee, $850 recording fees, $170 transfer tax, $1156 (I don't know what relation this has to the value of the house or the loan, if any.)
(I don't list property taxes, because those are a wash between the existing mortgage and new mortgage. )
I had to explain to the branch manager why lower interest means higher taxes; in my case about 20% Federal and New York. Obviously considering taxes pushes out the payback period; but in any closing costs are deductible that would reduce the payback period. He understood it when I explained it, but the fact that I had to explain it does not inspire confidence.
Stan Brown, Oak Road Systems, Tompkins County, New York, USA