How Do Origination Fees Work on a Rental Property Refinance?

Origination fees (0.5%–1.5% of loan amount) compensate the lender for processing your loan. They're negotiable — always ask for a reduction or credit.

• What to know: Understand every dollar involved in refinancing to make sure the math works for your Houston rental.
• Houston context: Houston closing costs are competitive with other major Texas markets. Title insurance rates are state-regulated, providing some cost predictability.
• Action step: Negotiate lender fees, shop title companies, and calculate your break-even point before committing to any refinance.

Bottom Line

The true cost of refinancing goes beyond the rate — factor in all closing costs and calculate how long it takes to recoup them through lower payments.