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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.

Формула

Breakeven months = Refinance costs / Monthly savings

Водич корак по корак

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

Worked Examples

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

Common Mistakes to Avoid

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

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