Refinance hub
Should You Refinance? The Break-Even Test.
Refinancing isn't about the rate — it's about the math. If the savings don't pay back your closing costs before you'd sell or refinance again, it's not a deal. Here's how to know.
1. Your break-even month
How many months until savings cover closing costs? Under 24 is usually a green light.
2. Your time horizon
How long will you keep this loan? If you'll move in 2 years, a 5-year break-even is a loss.
3. Your total cost
Monthly savings lie. Compare total interest + costs over your real horizon.
Good reasons to refinance
- ✓ Your break-even is well inside your time horizon — the math genuinely works.
- ✓ Dropping mortgage insurance — your home appreciated enough to remove PMI/MIP.
- ✓ Changing loan structure — ARM to fixed for stability, or shortening term to build equity faster.
- ✓ Tapping equity for a high-return use — and you've done the total-cost math.
Bad reasons to refinance
- ✗ “Rates dropped a little” — without running break-even. Small drops often don't pay back costs.
- ✗ Resetting to a new 30 years repeatedly — you keep restarting the interest-heavy early years.
- ✗ Cash-out for depreciating purchases — financing a lifestyle with your home equity.
- ✗ A telemarketer told you to — run your own numbers or ask someone with no commission on your decision.
Set your refi trigger
Tell me your current loan and the rate that would make refinancing worth it. I'll watch the market and reach out when your number hits — no spam, just the alert you asked for.
Important: All calculations on this site are estimates for educational purposes only and do not constitute a loan offer, approval, or commitment to lend. Your actual rate, payment, and terms depend on credit approval and will be provided by your loan officer.