Refinance Break-Even Calculator

Is Refinancing Worth It?

Refinancing your mortgage means replacing your current loan with a new one, usually at a lower interest rate. To know if it makes sense, you must calculate the Break-Even Point.

The break-even point is the number of months it takes for your monthly savings to "pay back" the upfront closing costs of the new loan.

• Monthly Savings: (Current Payment) - (New Payment).
• Calculation: (Closing Costs) / (Monthly Savings).

If you plan to stay in the home longer than the break-even period, refinancing is generally a winning move.