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How it works
Formula & explanation
Refinance Calculator uses the following calculation:
BreakEvenMonths = ClosingCosts / MonthlySavings
This is a simplified model intended for planning and education. Real-world offers from lenders, institutions, or tax authorities may include additional fees, rules, or adjustments not reflected here.
FAQ
Frequently asked questions
When does refinancing make sense?
Generally when the new rate is meaningfully lower than your current rate and you plan to stay in the home past the break-even point.
Should I roll closing costs into the loan?
It avoids upfront cash but increases your loan balance and total interest paid — model both scenarios before deciding.
Does refinancing reset my amortization clock?
Yes — a new 30-year refinance restarts the schedule, which can increase lifetime interest even at a lower rate if you're resetting years already paid down.
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