The final federal disclosure of loan terms, costs, payoffs, and cash movement for a covered refinance transaction.
A refinance Closing Disclosure is the final federal disclosure of loan terms, costs, payoffs, and cash movement for a covered refinance transaction.
It is the borrower’s main pre-closing comparison against the most recent Loan Estimate and expected refinance benefit.
Payoff interest, final title charges, recording amounts, lender credits, prepaid interest, and escrow deposits may be refined while the file moves toward closing. The Closing Disclosure assembles those figures with the final or near-final new-loan terms.
For most covered transactions, the borrower must receive the disclosure no later than three business days before consummation. That review period allows time to question a changed interest rate, loan amount, payment, prepayment penalty, points, credits, payoff, or cash-to-close result before signing the credit contract.
Not every correction restarts the three-business-day waiting period. Under the federal rule, a new waiting period is generally tied to specified major changes, such as an inaccurate APR beyond the permitted tolerance, a changed loan product, or addition of a prepayment penalty. Other corrected disclosures may be provided without a new full waiting period under the applicable timing rules.
The lender or settlement provider prepares the Closing Disclosure after underwriting, title, payoff, and fee information is substantially complete. The borrower compares it with the Refinance Loan Estimate and asks about unexplained differences before consummation.
At signing, the borrower receives the note, security instrument, and other closing documents. The Closing Disclosure does not prove that the refinance has funded, that the old mortgage has been paid, or that the new mortgage has been recorded.
Many refinances secured by a principal dwelling have a separate Right of Rescission after consummation. That cancellation period and the Closing Disclosure review period are different protections, and not every refinance has the same rescission treatment.
| Closing Disclosure area | What to confirm |
|---|---|
| Loan terms | Final amount, note rate, term, payment features, and penalties |
| Projected payments | Principal and interest, mortgage insurance, and escrow components |
| Costs at closing | Total closing costs and cash to or from the borrower |
| Loan Costs and Other Costs | Final lender, title, recording, prepaid, and escrow items |
| Payoffs and payments | Existing mortgage, subordinate liens, and other authorized obligations |
| Lender credits | Final credit amount and corresponding pricing |
| Escrow disclosure | Whether taxes and insurance are included in the new payment |
A borrower expected $25,000 of cash-out proceeds. The Closing Disclosure shows $22,600 because the old-loan payoff accrued more interest than the early estimate and final title and escrow amounts changed.
The borrower reconciles each difference before signing. If the revised net proceeds no longer meet the refinance goal, the borrower evaluates the available options rather than assuming the early estimate controls the final settlement.
A refinance Closing Disclosure differs from the Closing Disclosure only by transaction context. This page focuses on the payoff and cash-movement features of a refinance.
It differs from the Loan Estimate because it is the later disclosure based on final or near-final information. The two forms are designed to be compared, not added together.
It also differs from Refinance Funding. The Closing Disclosure reports the transaction; funding authorizes and releases the new loan money after all applicable closing requirements.