I want to refinance. When does it pay for itself?
The month the lower payment has paid back the closing costs.
How to use it
- Enter your balance, your current rate and the new rate you are offered.
- Enter the closing costs.
- Read the monthly savings and the month those savings have paid back the costs.
The month you break even.
Closing costs ÷ monthly savings. If you'll still be in the home that month, the refi pencils.
The reasoning behind it
A refinance costs money up front and saves money every month, so it pays for itself only after a certain month. Both payments are figured on a fresh thirty-year term, principal and interest only, because taxes and insurance carry over either way.
If you might sell or refinance again before that month, the refinance loses. Scenario 06 puts odds on that →
Ask me directly.
Six quick taps tell you which loan I’d start with, nothing pulled, nothing saved. Or text me and we start there. I read every text myself, usually within minutes during the day. About your numbers, or anything else.
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