Refinance Savings & Breakeven Calculator
Calculate refinance savings, new payment, and breakeven period. Determine if refinancing your mortgage makes financial sense.
How it works
Compares current vs new monthly payment, calculates total refinance costs, and determines breakeven period in months.
Example
$300K loan, 6% → 4.5%, $6K costs = $264/month savings, 23 month breakeven.
FAQ
When should I refinance my mortgage?
Generally when you can reduce your rate by at least 0.5-1%, stay in the home longer than the breakeven period, and closing costs don't exceed the savings.
How is refinance breakeven calculated?
Breakeven months = Total closing costs ÷ Monthly payment savings. This shows how long it takes for savings to offset refinancing costs.
What are typical refinance closing costs?
Typically 2-5% of loan amount, including origination fees, appraisal, title insurance, and other lender fees.
Should I include points in refinance costs?
Yes, discount points paid upfront should be included in total closing costs when calculating breakeven period.