Compare your current mortgage payment to a refinanced loan, and see how many months it takes to break even on closing costs.
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Refinance Comparison
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Current Monthly Payment—
New Monthly Payment—
Breakeven Point on Closing Costs—
Formula
Breakeven (months) = Closing Costs / Monthly Payment Savings.
Example
Refinancing a $280,000 balance from 7.2% to 6.0% might lower a $1,900 payment to about $1,679, saving $221/month. With $5,000 in closing costs, breakeven arrives in about 23 months.
Not tax or financial advice. This calculator provides general estimates based on published 2026 figures. Always confirm important figures with the IRS, SSA, your state tax agency, a licensed lender, or a qualified professional.
Frequently Asked Questions
How long should I plan to stay in the home to make refinancing worthwhile?
Generally, at least as long as the breakeven period shown above, so the monthly savings have time to exceed the upfront closing costs.
Does refinancing reset my loan term?
Yes, refinancing typically starts a new amortization schedule at the new term you choose, which can extend the total time until payoff even if the monthly payment drops.