Refinance Break-Even Calculator
Calculate how long it takes to recoup refinancing costs and determine if refinancing is right for you.
Should You Refinance Your Mortgage?
Enter your current and new loan details to find your break-even point
Understanding Refinance Break-Even
What is Break-Even Point?
The break-even point is when your cumulative monthly savings from refinancing equals the total closing costs you paid. After this point, you're actually saving money. Before it, you're still "paying off" the cost of refinancing.
When to Refinance
- New rate is 0.5-1% lower than current rate
- You'll stay past the break-even point
- You can afford closing costs
- Your credit score has improved
- Home value has increased (better LTV)
Typical Closing Costs
- Appraisal: $300-$500
- Title Insurance: $1,000-$2,000
- Origination Fee: 0.5-1% of loan
- Attorney Fees: $500-$1,000
- Recording Fees: $100-$250
- Total: Usually 2-5% of loan
Things to Consider
- Resetting to 30-year term increases total interest
- Consider 15 or 20-year terms for bigger savings
- Rolling costs into loan increases break-even time
- Compare multiple lenders for best rates
- Factor in PMI if applicable