What is the break-even point on a refinance?

The break-even point is when your monthly savings have added up to cover the refinance's closing costs. Divide total costs by monthly savings to get the number of months — say $6,000 in costs and $200 saved monthly breaks even at 30 months.

If you'll keep the home past break-even, refinancing pays off. We calculate yours precisely so you don't refinance into a loss.

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