Understanding FHA Streamline Refinance Closing Costs in 2025

An FHA Streamline Refinance still has closing costs, but they are significantly less than traditional refinance closing costs.

If you're considering an FHA Streamline Refinance in 2025, you're likely wondering: How much will the closing costs be? While the program offers reduced documentation and no appraisal in most cases, closing costs still apply—and it’s important to know what you're paying for.

In this article, we’ll break down the typical FHA Streamline closing costs, how they compare to a traditional refinance, and tips for reducing or rolling those costs into your new loan.

What Are FHA Streamline Closing Costs?

Closing costs are the fees and expenses paid when finalizing your refinance loan. With the FHA Streamline Refinance, these usually range from $1,500 to $4,000, depending on your loan amount, lender, and location.

Typical FHA Streamline Closing Costs in 2025

Here’s a breakdown of the most common FHA Streamline Refinance closing costs:

1. Upfront Mortgage Insurance Premium (UFMIP)

• 1.75% of the loan amount

• Can be rolled into the loan balance

• Required on all FHA Streamline refinances

  
  

2. Lender Fees

• Includes origination fee, underwriting fee, and processing fee

• Typically range from $500 to $1,200

• Some lenders may waive or reduce fees as part of a “no-cost” refinance

  
  

3. Title and Escrow Fees

• Title insurance and settlement charges

• Average between $800 and $1,500

  
  

4. Prepaid Taxes and Insurance

• Your lender will collect funds to set up or replenish your escrow account

• Covers property taxes, homeowners insurance, and prepaid interest

  
  

5. Recording and Transfer Fees

• Charged by the county to record your new loan documents

• Generally $100 to $250, depending on your state

Can FHA Streamline Closing Costs Be Rolled Into the Loan?

Yes and no. Here’s how it works:

• You can roll in the Upfront MIP (UFMIP) into your loan balance

• However, standard closing costs (lender, title, escrow) must typically be paid out of pocket

• Many borrowers opt for a no-cost FHA Streamline refinance, where the lender covers the fees in exchange for a slightly higher interest rate

Ways to Minimize FHA Streamline Closing Costs

• Compare multiple lenders: Rates and fees vary widely

• Ask about lender credits: Some lenders offer incentives to offset costs

• Use your escrow refund: Your current mortgage servicer may refund unused escrow after closing

• Negotiate title fees: You can often choose your own title company

No Appraisal = Lower Closing Costs

One of the biggest benefits of the FHA Streamline Refinance is that no home appraisal is required in most cases. This can save you $400–$700 right off the bat and helps speed up closing.

FHA Streamline Refinance vs. Conventional Refinance Costs

Feature	FHA Streamline	Conventional Refinance
Appraisal Required	Usually No	Yes
Income Verification	Not Required	Required
UFMIP	Required	Not Applicable
Typical Closing Costs	$1,500–$4,000	$3,000–$6,000

Final Thoughts

FHA Streamline Refinance closing costs in 2025 are generally lower than those of traditional refinance loans—but they’re not free. Understanding the breakdown of fees, your options for covering them, and how to shop around can help you maximize your savings and refinance with confidence.

How I Can Help You

When it comes time to purchase a home or refinance an existing loan, I want to help you! Hopefully articles like this give you good information and a better understanding of the mortgage world but let me use my experience and expertise to help you with your particular situation.

I tell my clients and referral partners that a mortgage transaction starts with a simple conversation. Let’s talk about your financial situation, budget, and goals so that I can help you determine the best solution for you. During a 10-minute informal conversation, we can get you on the right path as it relates to a home purchase or mortgage refinance.