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Refinance breakeven determines how many months you must keep a refinanced loan to recover closing costs. Compares current and new loan expenses to find the payoff point.

Fórmula

Breakeven months = Refinance costs / Monthly savings

Guia passo a passo

  1. 1Calculate refinance costs (appraisal, title, processing)
  2. 2Find monthly payment difference between loans
  3. 3Divide total costs by monthly savings

Exemplos resolvidos

Entrada
Costs: $3k, Monthly saving: $200
Resultado
Breakeven: 15 months
Keep loan 15+ months to benefit

Erros comuns a evitar

  • Ignoring prepaid interest and fees
  • Not accounting for tax deduction changes

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