One question every homeowner asks before refinancing is: how much will this cost? Refinance closing costs in South Carolina typically range from 2%–5% of the loan amount for a conventional refinance, and significantly less for a VA IRRRL. Here’s a full breakdown of what to expect.
Common Refinance Closing Costs
| Cost Item | Typical Range | Notes |
|---|---|---|
| Appraisal fee | $400–$700 | Not required for VA IRRRL |
| Origination fee | 0.5%–1% of loan | Negotiable with lender |
| Title insurance | $500–$1,200 | Lender’s policy required; owner’s optional |
| Settlement/closing fee | $300–$600 | Paid to the closing attorney |
| Recording fees | $50–$150 | County/state filing fees |
| VA funding fee | 0.5% (IRRRL) | VA loan only; exempt for 10%+ disabled veterans |
| Prepaid interest | Varies | Interest from closing to first payment |
| Escrow setup | 2–3 months reserves | Property tax and insurance |
VA IRRRL Closing Costs vs. Conventional
The VA IRRRL is specifically designed to minimize upfront cost. Key advantages:
- No appraisal (saves $400–$700)
- Low 0.5% funding fee (versus 0 on conventional, but no income verification needed)
- Can roll all costs into the loan
- Can close with zero cash out of pocket
A conventional refinance typically costs more upfront but provides more flexibility (cash out, PMI removal, any loan type). Compare your options in our VA IRRRL vs. Conventional Refinance guide.
Can You Roll Closing Costs Into the Loan?
Yes — on both VA IRRRLs and conventional refinances (in most cases), you can roll closing costs into the new loan balance. This means you don’t pay them at closing, but your loan balance increases, and you’ll pay interest on that additional amount over the loan term.
Rolling costs in works best when you plan to hold the loan for many years. For shorter holding periods, paying costs out of pocket gives you the cleanest break-even calculation. See our guide: Break-Even Point on a Refinance.
What Are Prepaids (and Are They Real Costs)?
Prepaids — homeowners insurance, property taxes, and prepaid interest — are often confused with closing costs. They’re not. You would owe these regardless of whether you refinance. When calculating your true cost of refinancing, only include the costs that exist because of the new loan (appraisal, origination fees, title, etc.).
How to Reduce Your Closing Costs
- Shop multiple lenders — fees vary significantly
- Ask for a no-cost refinance (higher rate in exchange for lender credit)
- Ask the lender about waiving origination fees
- If using a VA IRRRL, confirm your disability rating — 10%+ rated veterans are exempt from the funding fee
Not sure if refinancing is worth it for you? Read our full guide: When Does It Make Sense to Refinance?
Want a clear estimate of your refinance costs before you commit? We provide transparent loan estimates with no surprises.
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