Argh - my original answer below is incorrect. Anne and Lora's answer *is* correct. You'll pay transfer and recordation (T&R) taxes on a new home equity loan, or for the difference if you refinance for more than than the old loan (eg., if you refinance a $400K loan at $600K, you'll pay tax on the $200K difference). You don't have T&Rs for a straight re-finance. Sorry about that.

You are only required to may the difference of the original loan amount and the new loan amount. This can be significant if you are pulling out cash or paying off a second mortgage that wasn't originated at the time of purchase.

If this is a second home or vacation home and not your primary residence, that's another story, you'd be required to then pay it on the full amount.

Hope this helps.

Yes, it is correct. As stated before it is not a lender charge it is a state and county government charge.

I wouldn't take issue with the lender, but rather your local goverment who is making the charges.

Melissa - When you refinance in Montgomery County you'll pay about 1.1% in transfer and recordation taxes to the state and county on the new loan amount. You're right - it sucks.

Don`t know how things work across the pond but in this environment, banks are calling the shots and creating new ways to increase revenues.

Weigh what your paying in return for the refi $$$$. If you can pay down credit card debt etc., you`re still ciming out ahead.