When is refinancing worth it?

Refinancing usually makes sense when the monthly savings recoup your closing costs before you plan to move or pay off the loan. If you'll stay past the break-even point, you come out ahead.

What is the refinance break-even point?

It's closing costs divided by monthly savings. If refinancing costs $4,000 and saves $200/month, you break even in 20 months.

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Refinance Break-Even Calculator

Refinancing isn't free. This tells you the one number that matters: how long until your monthly savings pay back the closing costs — and whether it's worth it for you.

Lower payment isn't always a win

Refinancing to a new 30-year loan can cut your monthly payment yet increase total interest, because you've restarted the clock. Watch the "lifetime interest change" above: a red number means you'll pay more overall even though the monthly is lower. That can still be the right call for cash flow — just go in with eyes open.

Tip: if you refinance to a lower rate but keep paying your old (higher) payment, you capture the savings and pay the loan off faster.

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Refinance Break-Even Calculator

Lower payment isn't always a win

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