What Are the Fees for a Cash-Out Refinance on a Rental Property?

Fees include origination (0.5%–1.5%), appraisal ($400–$700), title ($1,500–$3,000), recording ($200–$500), and potential prepayment penalty on old loan.

• What to know: Understand the full cost of a cash-out refinance so you can accurately calculate whether the math works for your Houston rental.
• Houston context: Houston's competitive lending market means rates and fees vary significantly — shopping 3–5 lenders can save you thousands in total borrowing costs.
• Action step: Compare total costs (closing costs + higher monthly payment) against the return you expect to earn on the cash-out proceeds. The spread must be positive.

Bottom Line

Cash-out refinancing costs money — but when the proceeds earn a higher return than the borrowing cost, it accelerates Houston portfolio growth significantly.