Depends on the type of loan you’re getting, but if it’s an FHA, that cost is about spot on. Upfront (and monthly) MIP on FHA loans has risen dramatically as HUD tries to ensure FHA remains solvent. One bright spot, FHA is waiving its fees for borrowers doing streamline loans when their original loans were endorsed by FHA before June 2009. This is saving some borrowers several thousand $$, and the streamline process does NOT require an appraisal. Can’t speak for every lender, but I am paying the closing costs on the vast majority of my FHA streamline refinances these days!