Weigh a lower rate or new term against closing costs to see if refinancing pays off — and how long until you break even.
Current Loan
New Loan
Practical tips & common mistakes
Break-even months
Divide total closing costs by monthly payment savings. Stay past break-even or refinancing is a net loss even at lower rate.
Resetting the clock
Refinancing into a new 30-year from year 8 on the old loan extends total interest even if payment drops.
No-cost refi math
Lender-paid closing costs usually mean higher rate. Compare APR and total interest, not just "zero closing."
Cash-out refi
Pulling equity for consumption resets amortization on the full balance — separate consumption decision from rate optimization.