Should you refinance? See how long it takes to recoup closing costs and start saving
Refinancing replaces your current mortgage with a new one, ideally at a lower interest rate. The key question is whether the savings from the lower rate outweigh the closing costs. Our break-even calculator shows exactly how many months it takes to recoup those costs.
A common guideline is that refinancing makes sense if you can lower your rate by at least 0.5-1% and plan to stay in your home long enough to pass the break-even point. If closing costs are $6,000 and you save $200/month, your break-even is 30 months.