Refinance Break-Even Calculator
Find out exactly when refinancing your mortgage pays off. Compare your closing costs against your monthly savings to reveal your break-even point.
Understanding the Break-Even Point
Refinancing isn't free. Lenders charge closing costs to process a new loan. The break-even point is exactly when your accumulated monthly savings surpass those upfront fees.
When is it worth it?
A common rule of thumb is that if you plan to stay in your home longer than the break-even period, refinancing is a smart financial move. If you plan to move before that date, you will lose money on the transaction.
Lower Rate vs. Longer Term
Keep in mind that refinancing into a new 30-year term might lower your monthly payment, but it extends the time you are paying interest. Look at both monthly cash flow and total lifetime interest cost.
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