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Mortgage & Home
Refinance Break-Even
How many months until a refinance pays for its closing costs.
Your numbers
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%
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Break-even
17 months
Current payment$1.8K
New payment$1.5K
Monthly savings$273
Closing costs$4.5K
- Current payment
- $1,750.58
- New payment
- $1,477.72
- Monthly savings
- $272.86
- Closing costs
- $4,500.00
Extending the term can lower the payment while raising lifetime interest.
In plain English
Refinance Break-Even explained simply
Refinancing means swapping your old loan for a new one with a better rate. It costs money up front, so this tells you how many months it takes for the savings to pay you back.
For example
Spend $4,000 in closing costs to save $200 a month? You break even in 20 months. Stay in the house longer than that and you come out ahead.
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