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Refinance break-even
Compare your current fixed payment to a refinance and estimate months to recoup closing costs from lower payments.
Current loan
Principal still owed on your current mortgage — not the original loan amount.
$
Interest rate on your existing loan, used to compute today’s payment.
%
How many years remain on the current schedule if you keep the loan as-is.
New loan
Interest rate you expect on the refinance loan.
%
Length of the new loan. A longer term can lower the payment but may cost more interest overall.
Fees and points paid to refinance. Break-even is how long payment savings take to cover this amount.
$
Cash-flow break-even
2 years
Monthly savings$257
Breakdown
Current payment$2,228
New payment$1,970
Interest difference$39,202
After closing costs$33,202
Frequently asked questions
Read refinance break-even basics
How is break-even calculated?
Enter remaining balance, current rate (APR) and years left, then new rate (APR), new term, and closing costs. When the new payment is lower, cash-flow break-even months are roughly closing costs divided by monthly payment savings. The breakdown also compares interest difference and after-closing-costs.
Should I refinance just for a lower rate?
Not always. Closing costs, how long you will keep the loan, and term length matter. A lower payment with a much longer term can cost more interest overall.
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