What are the main closing costs when refinancing in Hawaii?

Refinance closing costs in Hawaii fall into four standard categories: lender charges in Section A (origination, application, processing, underwriting), third-party services in Sections B and C (appraisal, credit report, title), prepaids in Sections F and G (taxes, insurance, prepaid interest), and government recording fees in Section E. The state has no mortgage recording tax and no transfer tax on refinances, which keeps the bill closer to the national average than in higher-tax states.

Do I pay transfer tax on a refinance in Hawaii?

No — Hawaii exempts refinances from transfer tax. Transfer tax applies when property changes hands, not when the loan changes. The closing agent should not include any transfer tax line on a refinance LE in Hawaii; if one appears, push back.

Is title insurance discounted on a refinance in Hawaii?

Yes — title insurance reissue rates are generally available on refinances in Hawaii. The discount is typically 30 to 70 percent off the standard lender's policy premium when the prior title work is recent enough to qualify. The catch: the borrower usually has to ask. Closing agents do not always apply the reissue rate automatically — request it in writing before closing.

How much can I save by negotiating refinance closing costs in Hawaii?

Most Hawaii refinance borrowers save $500 to $2,500 by actively negotiating lender fees and shopping title — and often more on larger loans. The largest single source is the origination charge in Section A, which is typically negotiable by 25 to 50 percent against a competing Loan Estimate. Title and settlement services in Section C can usually be shopped for additional savings.

Refinance Closing Costs in Hawaii: Rules, Fees & Negotiation

Overview

Refinancing in Hawaii runs lighter than the national average because the state imposes no mortgage recording tax and exempts refis from transfer tax. Closings move through title companies and attorneys are not required. The biggest variable on the LE is the lender's own fee structure.

Borrowers frequently miss the title insurance reissue rate, which in Hawaii typically discounts the lender's policy by 30 percent. Within a few years of the prior title work the discount is generally available, but only if the borrower asks for it before closing.

Below: how to spot inflated lender fees on a Hawaii LE, where to claim the reissue discount, and what to push back on with the closing agent.

Worth knowing: Hawaii has NO mortgage tax. Conveyance tax applies only to deed transfers — refinances are exempt. Bureau of Conveyances recording fees are flat per-document and modest. Title underwriters active in the state include First American, Fidelity, Stewart, Old Republic, Title Guaranty (HI-based).

Where the audit fits

Outside the Hawaii-specific tax and attorney items, lender fees are the consistent place borrowers leave money on the table. Fair Loan Check Full Analysis ($39) benchmarks each line on your Loan Estimate against current market data, including a points break-even and a draft counter-offer email tailored to Hawaii.

Mortgage recording tax

Hawaii does not levy a mortgage recording tax. The new loan amount on a refinance does not trigger any state or county tax in Hawaii.

Transfer tax on refinance

Hawaii exempts refinances from transfer tax. Transfer tax applies when property changes hands, not when the loan changes. Hawaii's conveyance tax is among the highest in the nation for high-value properties (up to 1.25% on $10M+ non-owner-occupied), but refis are completely exempt.

Exemption statute: HRS § 247-1 imposes the Hawaii Conveyance Tax on the transfer of real property by deed. The tax is graduated based on consideration, with different rates for owner-occupied vs. non-owner-occupied properties — owner-occupied rates start at $0.10/$100 (under $600K) and scale up to $1.00/$100 ($10M+); non-owner-occupied rates start at $0.15/$100 and scale up to $1.25/$100. Refinances do not transfer real property and are not subject to conveyance tax.

Title insurance reissue rate

HI title insurance rates filed individually by underwriters with HI DCCA. Refinance/reissue rate available; typical 25–40% off lender's policy.

Typical discount on the lender's policy: 20–50% off (typical 30%).

Lookback period: Varies by underwriter. Documentation required: Prior policy.

Title Guaranty Hawaii is a major regional underwriter; most local closings go through them.

Sources

HRS § 247-1 et seq. (Hawaii Conveyance Tax)
HRS § 247-2 (rate structure)
Hawaii Department of Taxation — Conveyance Tax Forms

Ready to apply this to a real Loan Estimate? Audit your refinance LE for padded lender fees and get a counter-offer email drafted from your specific numbers.

Audit my Hawaii refinance Loan Estimate ($39)

Refinancing in Hawaii? Here's what you'll actually pay.