What's a typical refinance break-even?

Most homeowners need 2-5 years to recoup typical closing costs (2-5% of loan amount). If you plan to move sooner, refinancing usually doesn't pay off unless rates have dropped substantially.

How much rate drop justifies refinancing?

A historical rule of thumb was 1 full percentage point, but with lower-cost online lenders it can make sense at 0.5-0.75%. Run the actual numbers — break-even depends as much on closing costs and how long you'll stay as on the rate gap.

Does extending the term cost me more?

Yes, usually. Refinancing a 20-year-remaining loan into a fresh 30-year resets the amortization clock — you might lower the monthly payment but pay more total interest. The calculator shows total interest comparison.

Refinance Break-even Calculator

Compare your current mortgage to a refinance scenario. See your monthly savings, total interest saved, and the exact month closing costs are recouped.

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