Tools · Run the numbers
Refinance break-even
How long the lower payment takes to earn back the cost of refinancing.
A refinance has upfront costs. This shows how many months of lower payments it takes to earn those costs back — your break-even.
Break-even
1 yr 9 mo
≈ 21 months to recover the costs
This counts the full payment drop — see the note below on how a longer term shifts interest.
To see lifetime interest — not just the monthly break-even — you'd need your current rate and remaining term; the compare tool shows full schedules side by side.
A lower payment isn't the same as less interest — re-extending to a fresh 30-year term can cost more interest over the life of the loan even while the payment drops. The payment break-even includes that stretch; the interest break-even (enter your current rate to see it) measures the rate change alone.
Estimates only — not a quote, pre-approval, or offer of credit. Your actual terms come from a lender's Loan Estimate. Break-even only matters for as long as you keep the loan.
Terms on this page
- RefinanceReplacing your current mortgage with a new one, usually to lower the rate or change the term.
- Closing costsOne-time fees to finalize the loan and purchase — lender fees, title, taxes, prepaids — usually a few percent of the price.
- Break-evenThe point where an upfront cost (points, refinance fees) has been recovered by the monthly savings it bought.
- Loan termHow long the loan is scheduled to last — shorter terms mean higher payments but far less total interest.
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