• Home refinance fees are typically standard, though some fees are not as routine.home image by Greg Pickens from Fotolia.com
  
  A home refinance is a change from one mortgage to another by a homeowner. It is commonly used to reduce interest costs and monthly payments and to extend the repayment period on a mortgage. Common refinance closing costs include credit fees, appraisal fees, points (which is an optional expense), insurance and taxes, escrow and title fees, and lender fees, according to the Mortgage Calculator website. Get a good faith estimate to compare lender closing costs.
  
  

Origination Fees

• Origination fees are lender-added mortgage fees that are not typically required as part of the home refinance process. Some lenders includes these fees to increase your upfront cost and reduce their risk of loss on a potential mortgage default. Origination fees can be negotiated, according to the My Fico website. During competitive refinance periods, lenders should be competing for your business, and origination fees should not be necessary to obtain a reasonable mortgage quote.
  
  

Discount Points

• Discount points are considered an optional loan acquisition cost. Points are usually paid on a refinance acquisition to "buy down" the interest rate. Adding fractional points or full point discounts can reduce your interest rate on your loan by fractional percentages. If you intend to stay in your home for a long period of time, it may make sense to pay points to reduce long-term interest expenses. With a shorter-term stay in your home, paying points to reduce long-term interest costs is not as logical, according to My Fico.
  
  

Prepayment Penalties

• Prepayment penalties are not overly common but are sometimes included in mortgages and home refinancings. Prepayment penalties are fees charged to mortgage borrowers who pay off a loan balance early. Penalties are typically flat fees or percentages of a portion of the original loan balance. These fees can be hefty, and many homeowners complain that lenders do not adequately disclose their existence, according to the Mortgage-Helper website. Lenders use them as a way to discourage homeowners from paying off loan balances extremely early, which would reduce interest fees paid to the lender. A prepayment penalty goes against a common homeowner goal: making extra principal payments to pay down a loan early.