Refinance Closing Costs Explained for Texas Homeowners

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Refinance Closing Costs Explained for Texas Homeowners

Refinancing replaces your existing mortgage with a new loan.

Because the lender must originate, underwrite, document, insure, and close that new mortgage, refinancing normally involves many of the same expenses as obtaining the original loan.

Those expenses may include:

Lender charges.
Discount points.
Appraisal fees.
Credit-report fees.
Title-company charges.
Title insurance.
Recording fees.
Prepaid interest.
Property-tax reserves.
Homeowners-insurance reserves.
Other property-specific expenses.

However, not every dollar shown under “cash to close” is a true refinance cost.

Some amounts represent prepaid expenses that you would eventually pay whether you refinanced or not. Others fund a new escrow account and may be partially offset when your previous mortgage servicer returns the balance in your old account.

Understanding those differences is essential when determining whether a refinance actually saves money.

This guide provides refinance closing costs explained clearly so Texas homeowners can compare loan offers, calculate the real break-even point, and avoid choosing a mortgage based solely on the advertised rate.

How Much Are Refinance Closing Costs?

There is no single percentage that accurately predicts every homeowner’s refinance closing costs.

The total depends on factors such as:

Loan amount.
Mortgage program.
Property value.
Property type.
Occupancy.
Credit profile.
Interest-rate selection.
Discount points.
Lender compensation.
Title requirements.
State and county recording charges.
Property taxes.
Homeowners insurance.
Escrow-account requirements.
Existing liens.
Whether an appraisal is required.

A homeowner refinancing a small conventional mortgage without points may have significantly different costs than someone refinancing a jumbo loan, investment property, or Texas home-equity loan.

That is why refinance proposals should be compared line by line instead of using a generic closing-cost percentage.

The Difference Between Closing Costs and Cash to Close

Closing costs and cash to close are not the same thing.

Closing costs are the charges associated with obtaining and settling the new mortgage.

Cash to close is the net amount the homeowner must provide after accounting for:

Closing costs.
Prepaid expenses.
Escrow deposits.
Existing mortgage payoff.
New loan amount.
Lender credits.
Principal reductions.
Other credits and adjustments.

A borrower could have $8,000 in disclosed costs but need only $1,000 at closing if most expenses are financed or covered by a lender credit.

Another borrower could have $5,000 in true closing costs but need $12,000 at closing because a new escrow account and prepaid insurance must also be funded.

Always determine what each dollar represents before comparing the bottom-line cash requirement.

Related resource: Loan Estimate Explained.

The Main Categories of Refinance Closing Costs

Refinance expenses generally fall into four broad categories:

Lender and loan-origination charges.
Third-party settlement charges.
Prepaid expenses.
Initial escrow deposits.

The first two categories are usually true transaction costs.

Prepaids and escrow funding still affect cash to close, but they should be evaluated differently because they relate to the normal cost of owning the home.

Lender and Loan-Origination Charges

Lender charges cover the cost of originating, processing, underwriting, and funding the new mortgage.

Possible charges include:

Origination fees.
Underwriting fees.
Processing fees.
Administrative fees.
Tax-service fees.
Flood-certification fees.
Verification fees.
Credit-report fees.
Mortgage-insurance charges.
Discount points.

Not every lender uses the same fee structure.

One lender may charge an origination fee but offer a lower interest rate. Another may advertise no origination fee while building its compensation into the mortgage rate.

The complete rate-and-fee combination matters more than any single charge.

Related resource: Mortgage Lender Fees Explained.

Origination Fees

An origination fee compensates the lender or mortgage provider for arranging and processing the new loan.

It may be expressed as:

A percentage of the loan amount.
A flat dollar amount.
A combination of charges.
Compensation incorporated into the interest rate.

For example, one point equals 1% of the mortgage amount.

On a $400,000 loan:

0.50% equals $2,000.
1.00% equals $4,000.
1.50% equals $6,000.

An origination charge should not automatically be considered excessive or unfavorable. It must be compared with the rate, lender credit, other fees, and overall loan structure.

Discount Points

Discount points are an optional or pricing-driven upfront cost used to obtain a lower interest rate.

Paying points may be beneficial when the homeowner expects to keep the new mortgage long enough to recover the expense through monthly savings.

For example:

Cost of discount points: $4,000
Additional monthly savings from the lower rate: $100
Point-specific break-even period: 40 months

If the mortgage is sold, paid off, or refinanced again before that point, the homeowner may not fully recover the cost.

Discount points should be evaluated separately from standard lender fees because they represent a pricing choice.

Related resources: Mortgage Discount Points Explained and When Does Paying Mortgage Points Make Sense?

Appraisal and Property-Valuation Fees

A refinance may require a new property valuation.

Depending on the loan and underwriting findings, that could involve:

A traditional appraisal.
A desktop appraisal.
A hybrid appraisal.
Property-data collection.
An automated valuation.
An appraisal waiver.

The appraisal fee depends on the property’s location, size, complexity, and intended use.

Costs may be higher for:

Rural properties.
Homes with acreage.
Multifamily properties.
Investment properties.
Manufactured homes.
Luxury properties.
Unique properties.
Properties with accessory dwelling units.
Homes with limited comparable sales.

An appraisal waiver can reduce the upfront cost, but it is not guaranteed and may disappear if the loan structure or application information changes.

Related resources: Mortgage Appraisal Process Explained and Unique Property Mortgage Financing.

Credit Report and Verification Charges

The lender may incur charges for obtaining or updating:

Credit reports.
Flood-zone determinations.
Tax records.
Employment verification.
Income verification.
Asset verification.
Mortgage-payment history.
Other required third-party information.

Some lenders combine these expenses into broader administrative charges. Others disclose them individually.

These fees are usually relatively small compared with title charges, points, or origination costs, but they remain part of the refinance’s true expense.

Title Search and Title Examination

The title company must confirm:

The legal owner of the property.
Which liens currently affect the property.
The payoff requirements for existing mortgages.
Whether judgments or tax liens are attached.
Whether ownership changes must occur.
Whether the new lender can obtain an enforceable lien.
Whether existing subordinate liens will be paid off or subordinated.

Title issues can make a refinance more expensive or delay closing.

Common complications include:

A deceased owner remaining in the chain of title.
A former spouse remaining on title.
An unreleased mortgage.
A federal tax lien.
A judgment lien.
Ownership held in a trust.
Incorrect legal descriptions.
Multiple parcels.
Existing home-equity liens.
Unresolved probate matters.

Related resources: Common Title Problems That Delay Mortgage Closing and Refinancing When a Deceased Spouse Remains in the Chain of Title.

Lender’s Title Insurance

A lender’s title-insurance policy protects the new mortgage holder against certain covered title defects.

The lender’s policy obtained during the original purchase generally does not remain in effect for the new loan because the refinance creates a different mortgage obligation.

Therefore, a new lender’s title policy is commonly required.

In Texas, title-insurance premiums are regulated. Applicable credits or discounts may depend on the existing policy, transaction history, timing, and type of refinance.

The title company should determine whether the transaction qualifies for a refinance credit or other permitted premium reduction.

The borrower should provide a copy of the prior title policy when requested because it may help the title company establish eligibility.

Settlement, Closing, and Escrow Fees

The title company or settlement provider may charge for services such as:

Preparing the settlement.
Coordinating mortgage payoffs.
Handling funds.
Preparing or reviewing documents.
Conducting signing.
Recording the new lien.
Issuing the title policy.
Resolving title requirements.
Processing releases and subordinations.

The terminology and amount can vary between title companies.

When comparing lenders, determine whether each estimate uses the same title company and comparable third-party charges. Otherwise, differences in the quoted cash to close may not actually come from the lender.

Recording and Government Charges

The new deed of trust and related documents must generally be recorded in the county’s public records.

Government charges may include:

Recording fees.
Release-recording fees.
Mortgage-related filing charges.
Other county-specific fees.

These expenses are generally based on the documents being recorded rather than the interest rate.

Survey Costs

A new survey may not be required for every refinance.

An existing survey may sometimes be accepted if:

It accurately reflects the property.
No structural or boundary changes have occurred.
The legal description remains correct.
The title company accepts the survey.
Required affidavits are signed.

A new survey may be required when:

Improvements have been added.
A pool, fence, addition, or detached structure was built.
Parcel boundaries changed.
The existing survey is missing or illegible.
The title company identifies a coverage issue.
Multiple parcels are involved.

Related resource: Survey Problems That Can Delay Closing.

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Prepaid Interest Is Not a Lender Fee

Mortgage interest is generally paid in arrears through the monthly payment.

At refinance closing, the new lender typically collects interest from the loan’s funding date through the end of that month.

For example, if the loan funds on August 15, prepaid interest may be collected for the remaining days in August. The first full mortgage payment may then be due October 1.

A later funding date generally produces fewer days of prepaid interest, while an earlier funding date produces more.

Prepaid interest affects cash to close, but it is not compensation paid to the lender for originating the loan. It is interest owed for the period during which the homeowner has use of the new mortgage funds.

Interest Included in the Existing Mortgage Payoff

The old mortgage payoff also includes interest through the date the prior lender receives the payoff funds.

This is why the payoff amount is usually higher than the principal balance shown on the most recent mortgage statement.

The payoff may include:

Unpaid principal.
Accrued daily interest.
Deferred balances.
Authorized fees.
Recoverable advances.
Prepayment penalties when applicable.
Additional days of interest to allow for delivery.

This payoff interest is not normally shown as a new-loan closing cost because it is incorporated into the amount required to satisfy the existing mortgage.

Borrowers should not assume that the difference between the statement balance and payoff amount represents an unexplained lender fee.

Initial Escrow Deposits

If the new mortgage includes an escrow account, the lender may collect reserves for:

Property taxes.
Homeowners insurance.
Flood insurance.
Mortgage insurance.
Other eligible housing expenses.

The amount depends on:

Upcoming tax due dates.
Insurance renewal dates.
The expected first mortgage payment.
The annual amounts being collected.
The cushion permitted under applicable rules.
Whether any taxes or insurance premiums must be paid immediately.

Escrow funding can represent a substantial portion of cash to close, especially when the refinance occurs shortly before a large property-tax payment.

However, escrow deposits are not the same as lender fees.

The money remains designated for future property expenses.

Related resource: Mortgage Escrow Process Explained.

What Happens to the Old Escrow Balance?

The escrow account held by the previous mortgage servicer is generally separate from the new loan’s escrow account.

After the old mortgage is paid off, the prior servicer normally performs an escrow analysis and returns the remaining eligible balance.

The refund may arrive after closing.

This creates a temporary timing difference:

The new escrow account may need to be funded at closing.
The old escrow refund may not arrive until later.

For example:

New escrow deposit at closing: $6,000
Anticipated refund from old servicer: $4,800
Estimated net escrow timing difference: $1,200

The borrower still needs a plan for the full $6,000 unless the amount is financed or offset by lender credits.

The expected old escrow refund should not be subtracted from the official cash-to-close amount unless it is actually available and permitted for use in the transaction.

Homeowners-Insurance Premiums

A refinance may require the lender to confirm that homeowners insurance remains active and meets the new loan’s requirements.

Depending on the policy-renewal date, the closing figures may include:

A full annual premium.
An upcoming renewal premium.
Initial escrow reserves.
Flood-insurance premiums.
Increased coverage requirements.

Insurance charges can sometimes appear in both prepaid expenses and escrow deposits because one amount pays the current bill while the other creates reserves for a future bill.

That does not necessarily mean the premium is being charged twice.

Related resource: Homeowners Insurance Problems That Can Stop a Mortgage.

Property Taxes

Property taxes may affect a refinance through:

Taxes currently due.
Taxes coming due before the first payment.
Escrow reserves for future taxes.
Delinquent taxes that must be paid.
Tax certificates or verification charges.

In Texas, annual property-tax bills can be substantial. The month in which a refinance closes may therefore have a significant effect on the escrow portion of cash to close.

Taxes and escrow reserves should be separated from true loan costs when calculating the refinance’s financial benefit.

Related resources: Texas Property Tax Proration at Closing and Texas Property Tax Reassessment After Buying a Home.

How Lender Credits Work

A lender credit is money provided through the loan’s interest-rate pricing to offset eligible closing costs.

Generally, a larger lender credit corresponds with a higher interest rate than the borrower could receive by paying more upfront.

For example, a homeowner might compare:

Lower rate with $5,000 due in loan costs.
Middle rate with $2,500 due in loan costs.
Higher rate with enough lender credit to cover most eligible costs.

None of these options is automatically best.

The correct structure depends on:

Monthly payment difference.
Expected time in the mortgage.
Available cash.
Break-even period.
Likelihood of selling.
Likelihood of refinancing again.
Long-term interest expense.

Related resource: Discount Points vs. Lender Credits.

What Is a No-Closing-Cost Refinance?

A no-closing-cost refinance usually does not mean that every service is provided for free.

Instead, the lender may cover eligible expenses through a lender credit tied to a higher interest rate.

Another structure may finance costs by adding them to the new loan balance.

These methods solve different problems:

A lender credit reduces upfront expense but may increase the rate and monthly payment.
Financing costs preserves cash but increases the loan balance.
Paying costs out of pocket creates the lowest starting balance but requires more cash at closing.

A no-closing-cost structure may be useful when:

The homeowner expects to keep the loan for a short period.
Future refinancing is reasonably likely.
Preserving liquidity is important.
The higher rate remains meaningfully better than the current mortgage.

It may be less attractive when the homeowner expects to keep the new loan for many years and could recover upfront costs through a lower rate.

Can Refinance Closing Costs Be Financed?

Many refinance programs allow eligible closing costs to be incorporated into the new mortgage, subject to:

Maximum loan-to-value limits.
Property value.
Loan-program requirements.
Cash-back restrictions.
Underwriting approval.
Texas-specific requirements.
Maximum loan limits.

For example:

Existing payoff: $300,000
Eligible costs and prepaids: $8,000
Proposed new loan: $308,000

The borrower may avoid bringing the full $8,000 to closing, but the mortgage balance increases accordingly.

Financed costs should not be treated as free simply because they do not require an immediate payment.

Related resource: Rate-and-Term Refinance Guide.

Can You Increase the Loan Amount After the Appraisal?

The property value establishes an important limit on how much can be financed.

If the appraisal is lower than expected, the homeowner may need to:

Pay some expenses out of pocket.
Accept a higher rate with more lender credit.
Reduce discount points.
Reduce the loan amount.
Restructure mortgage insurance.
Change loan programs.
Cancel the refinance.

If the value is higher than expected, the borrower may have more flexibility, but rate-and-term and limited-cash-out rules still restrict how proceeds can be used.

A higher appraisal does not automatically allow unlimited cash back without changing the loan classification.

Related resource: What Happens When an Appraisal Causes the Maximum LTV to Change?

How to Read Refinance Costs on the Loan Estimate

For most covered closed-end mortgages, the lender provides a Loan Estimate after receiving the six pieces of information that constitute an application.

The Consumer Financial Protection Bureau’s disclosure guide explains that the Loan Estimate is designed to show the loan’s key features, costs, and risks. It generally must be delivered or placed in the mail no later than three business days after the application is received.

On Page 2, costs are generally organized into sections such as:

Origination charges.
Services the borrower cannot shop for.
Services the borrower can shop for.
Taxes and other government fees.
Prepaids.
Initial escrow payment at closing.
Other charges.
Lender credits.

When comparing offers, pay particular attention to:

Interest rate.
Discount points.
Origination charges.
Lender credits.
Services controlled by the lender.
Loan amount.
Monthly principal and interest.
Mortgage insurance.
Estimated cash to close.
Annual percentage rate.
Five-year cost information.

Related resources: Loan Estimate Explained and APR vs. Interest Rate.

Why Two Loan Estimates May Show Different Closing Costs

Two Loan Estimates can look dramatically different even when the lenders’ true charges are similar.

Possible reasons include:

One estimate uses discount points and the other does not.
One lender offers a credit.
Different property values were entered.
Different loan amounts were requested.
One estimate assumes an escrow waiver.
Property taxes were estimated differently.
Insurance premiums were estimated differently.
Different title companies were used.
One estimate includes an appraisal waiver.
The interest rates were quoted at different times.
One interest rate was locked and the other was floating.
One quote assumes borrower-paid compensation.
The loan terms are different.

A fair comparison requires matching:

Loan program.
Loan amount.
Loan term.
Lock period.
Interest rate.
Property value.
Occupancy.
Escrow structure.
Discount-point level.
Quote date and time.

Related resource: Why Advertised Mortgage Rates Can Be Misleading.

Which Fees Can Change Before Closing?

Some estimated charges can change as additional information becomes available.

Examples include:

Prepaid interest due to a changed funding date.
Escrow deposits.
Homeowners-insurance premiums.
Property taxes.
Title charges for borrower-selected providers.
Appraisal costs for unusually complex properties.
Recording fees.
Mortgage payoff amounts.
Fees affected by a valid changed circumstance.

Other costs may be subject to federal tolerance limitations.

The final numbers should be reviewed on the Closing Disclosure, which the CFPB says consumers generally must receive no later than three business days before consummation.

Related resource: Closing Disclosure Explained.

The Three-Day Right of Rescission

Many refinances secured by a borrower’s principal dwelling are subject to a federal right of rescission.

This generally provides a period during which the consumer may cancel the transaction after signing.

The exact calculation, required disclosures, and exceptions depend on the transaction.

For example, the right does not apply to every mortgage transaction, and special rules may affect refinances completed with the same creditor when no new money is advanced.

The new refinance typically does not disburse until the applicable rescission period has expired.

The current requirements are contained in the CFPB’s Regulation Z right-of-rescission rule.

This waiting period should be considered when:

Ordering the existing mortgage payoff.
Calculating prepaid interest.
Scheduling debt payoffs.
Coordinating a divorce settlement.
Planning around a property-tax deadline.
Determining when the old mortgage will be satisfied.

Texas Home-Equity Refinance Costs

Texas imposes special requirements on loans secured by a homestead when the transaction is classified as a Texas home-equity loan under Section 50(a)(6).

The Texas Constitution limits certain fees associated with a home-equity loan. However, determining which charges count toward that limitation and which charges are excluded requires a loan-specific compliance review.

Some third-party charges may receive different treatment from lender-controlled fees.

The Texas home-equity consumer disclosure should be reviewed alongside the loan documents, applicable constitutional provisions, and lender requirements.

A refinance of an existing Texas home-equity loan may also have to be structured as:

Another Texas home-equity loan.
An eligible non-home-equity refinance under Section 50(f)(2).
A different permitted lien, depending on the circumstances.

The current lien history must be reviewed before quoting costs because the transaction’s classification can affect:

Maximum loan amount.
Available interest rates.
Required disclosures.
Waiting periods.
Title requirements.
Closing procedures.
Permissible charges.

Related resources: Texas Cash-Out Refinance Rules and Texas Home Equity 80% Combined LTV Rule.

Calculating the Refinance Break-Even Point

A basic break-even calculation divides the refinance’s true costs by the monthly savings.

For example:

True refinance costs: $6,000
Monthly payment savings: $300
Estimated break-even period: 20 months

If the homeowner expects to keep the mortgage longer than 20 months, the accumulated payment savings may recover the transaction costs.

But the calculation should not automatically include the entire cash-to-close figure.

New escrow deposits and prepaid property expenses should be identified separately—especially when the homeowner expects an old escrow refund.

A stronger analysis should also consider:

Change in principal balance.
Remaining term on the existing loan.
New loan term.
Mortgage-insurance changes.
Total interest over the expected holding period.
Points versus lender credits.
Cash contributed at closing.
Opportunity cost of that cash.
Expected sale date.
Possibility of another refinance.

A More Complete Refinance Cost Example

Assume the following:

Existing mortgage payoff: $350,000
Lender and third-party loan costs: $5,500
Prepaid interest: $1,000
New escrow funding: $5,000
Expected old escrow refund: $4,200
New loan amount: $356,500
Borrower cash to close: $5,000
Monthly payment reduction: $325

The $11,500 in total charges and deposits should not all be treated as the refinance’s economic cost.

The analysis might separate:

True transaction costs: $5,500
Prepaid interest: $1,000
Net escrow timing difference: $800
Financed amount: $6,500
Temporary cash required for new escrow: $5,000
Expected monthly savings: $325

The simplified break-even period based on the $5,500 of true costs would be approximately 17 months.

However, the final decision should also account for the higher loan balance, new amortization term, and expected time in the mortgage.

Real Refinance Closing-Cost Scenarios

The Escrow Shock Scenario

A homeowner is told that the refinance has $10,000 in closing costs.

After reviewing the Loan Estimate, only $4,000 represents lender and title charges. The remaining $6,000 funds property taxes and insurance.

The homeowner also expects a $5,000 refund from the former servicer.

The actual economic cost is substantially different from the initial impression created by the cash-to-close figure.

The Low-Rate, High-Points Scenario

A lender advertises an unusually low interest rate.

The Loan Estimate reveals that the rate requires $9,000 in discount points.

The homeowner plans to sell the property within two years, so the monthly savings are unlikely to recover the upfront cost.

A slightly higher rate with minimal points may be the stronger strategy.

The No-Cost Refinance Scenario

A borrower expects to refinance again if rates fall further.

Instead of paying $5,000 upfront, the borrower selects a higher rate with enough lender credit to cover eligible costs.

The payment is slightly higher, but the borrower avoids investing cash that may not be recovered before the next transaction.

The Low-Appraisal Scenario

The proposed loan was designed to include all eligible costs.

The appraisal comes in below expectations, increasing the loan-to-value ratio.

The borrower must choose between bringing cash to closing, accepting a lender-credit structure, reducing the loan amount, or canceling the refinance.

The Texas Home-Equity Scenario

A homeowner believes the transaction is a simple rate-and-term refinance.

The title search reveals that the existing mortgage is a Texas Section 50(a)(6) home-equity loan.

The lender must restructure the transaction around Texas constitutional requirements, which changes the available pricing, documents, timing, and closing-cost analysis.

Common Misconceptions

“Everything Listed Under Cash to Close Is a Fee.”

Cash to close may include escrow reserves, prepaid interest, insurance premiums, taxes, payoff adjustments, and other amounts that are not lender fees.

“A No-Closing-Cost Refinance Has No Costs.”

The expenses may be covered through a lender credit associated with a higher rate or incorporated into the new loan balance.

“The Lowest Interest Rate Is the Best Deal.”

A very low rate may require substantial discount points.

The homeowner must keep the mortgage long enough to recover those costs.

“Financed Closing Costs Do Not Matter.”

Adding costs to the mortgage preserves cash but increases the principal balance and the interest charged over time.

“The Old Escrow Account Transfers to the New Loan.”

The prior servicer generally returns the old escrow balance separately after the mortgage payoff is processed.

“Every Lender Controls Every Closing Cost.”

Many expenses come from third parties, government entities, insurance providers, tax authorities, appraisers, and title companies.

“Refinancing Late in the Month Eliminates Interest.”

Closing later in the month may reduce the new loan’s prepaid interest, but the existing mortgage continues accruing interest until it is paid off.

The total timing effect must be evaluated rather than focusing on one line item.

Real Lender Perspective

Closing-cost confusion usually occurs because three separate concepts are combined:

The actual cost of obtaining the mortgage.
The normal cost of owning the property.
The temporary movement of money between old and new escrow accounts.

Those are not the same thing.

We frequently see homeowners reject a beneficial refinance because a large escrow deposit makes the estimated cash to close appear excessive.

We also see the opposite problem: a borrower accepts a low advertised rate without realizing that thousands of dollars in discount points may take many years to recover.

The most useful comparison is not:

“Which lender has the lowest closing costs?”

It is:

“Which loan structure produces the strongest financial outcome during the period I realistically expect to keep it?”

That requires comparing the interest rate, true transaction costs, lender credits, new balance, loan term, payment, escrow timing, and break-even period together.

Who This Guide Is For

This refinance closing costs explained guide may be especially helpful for:

Texas homeowners considering refinancing.
Borrowers comparing multiple Loan Estimates.
Homeowners considering discount points.
Borrowers evaluating a no-closing-cost refinance.
Homeowners with large escrow balances.
Borrowers refinancing before property taxes are due.
Homeowners with second mortgages or HELOCs.
Borrowers refinancing a Texas home-equity loan.
Divorced homeowners restructuring a mortgage.
Homeowners trying to reduce monthly payments.
Borrowers comparing rate-and-term and cash-out options.
Homeowners deciding whether the savings justify the expense.

Final Thoughts

Refinance closing costs should never be evaluated as one unexplained number.

A proper analysis separates:

Lender fees.
Discount points.
Appraisal and valuation charges.
Title and settlement expenses.
Government recording charges.
Prepaid interest.
Insurance premiums.
Property taxes.
New escrow deposits.
Expected old escrow refunds.
Lender credits.
Financed expenses.

Once those items are separated, the homeowner can determine the refinance’s actual economic cost and calculate a meaningful break-even period.

The right refinance is not necessarily the loan with the lowest rate, the lowest cash to close, or the largest lender credit.

It is the structure that provides the best balance of upfront expense, monthly savings, loan balance, repayment term, and long-term financial benefit.