National Low-Credit Refinance Cost Study 2026

Updated October 2026

This reproducible scenario study compares assumptions, not observed lender offers or borrower outcomes.

Interpretation

The score sensitivity cases assume a half-point rate difference; this is not a measured 580-to-620 pricing adjustment. Actual lender pricing depends on product, equity, points, property and underwriting. Compare matched written offers rather than attributing every cost difference to a credit score.

Payment and break-even example

With $4,800 transaction costs and $200 comparable monthly savings, simple break-even is 24 months. Financed fees accrue interest; restarting a term may increase lifetime interest. Compare remaining balances at the expected sale date.

Methodology and limitations

All cases use $270,000 principal over 360 months. P&I = P*r/(1-(1+r)^-n). Fees are paid separately, not financed. Rates, insurance and fees are illustrative assumptions, not PMMS quotes or measured credit-score pricing. Taxes, homeowners insurance, upfront program premiums and funding fees are excluded. Score labels do not establish eligibility or isolate a causal score effect. ACS 5-Year describes existing households and is not used as refinance pricing data.

The 2026 FHFA one-unit baseline is $832,750 and FHA floor is $541,287. Confirm county limits and current program rules. These limits are not qualification promises.

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