Refinance Break-Even Calculator
Calculate how long it takes to break even on mortgage refinancing. Determine when your monthly savings will cover the closing costs and start putting money back in your pocket.
Step 1: Current Mortgage
Understanding Your Current Mortgage
Your break-even point depends on your current loan balance, interest rate, and remaining term. Higher balances and rates typically create more refinancing savings potential.
Step 2: New Mortgage
About Closing Costs
Closing costs typically range from 2% to 5% of the loan amount and include appraisal fees, title insurance, origination fees, and other charges. These costs must be recovered through monthly savings to reach the break-even point.
Refinance Break-Even Results
Break-Even Point
Interest Rate Comparison
| Interest Rate | Monthly Payment | Break-Even Months | 5-Year Savings |
|---|
Savings Over Time
Break-Even Formula
Break-Even Point = Closing Costs ÷ Monthly Savings
To calculate break-even: Divide your total closing costs by your monthly payment savings. This tells you how many months it will take to recover your refinancing costs.
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