Refinance Break-Even Calculator
Calculate when refinancing pays off and compare different scenarios
Current Mortgage
New Loan Options
Each point = 1% of loan, typically reduces rate 0.25%
Refinance Analysis
Current Payment
$10833
25 months left at 7.5%
New Payment
$9232
30 months at 6.5%
Monthly Change
-$1600
14.8% change
Break-Even Analysis
Upfront Costs
$5000
Break-Even
4 months (0.3 years)
Worth It?
Yes
Planning Horizon
10 years
Interest Comparison
Savings over 25 months: $35012 (including costs)
Alternative Term Scenarios
Extra Payment Impact
Pay $0/mo extra on new loan: payoff in 30 months, save $0 interest
Key Insights
- • Monthly savings exceed 10% - refinancing strongly recommended
- • New loan extends term - total interest may increase despite lower rate
- • Lower payment but higher total interest - evaluate your priorities
Note: Refinance costs typically 2-5% of loan amount. Points: 1 point = 1% loan amount, reduces rate ~0.25%. Break-even under 3 years usually worthwhile. Consider: will you stay in home past break-even? Lower rate but longer term may increase total interest. Cash-out refi increases loan amount. Compare with keeping current loan. Check current rates vs historical trends. Consider no-cost refinance options. Factor in tax implications.