Refinance Break even

Refinance Break-Even

Will a refinance actually pay for itself?

A lower rate is only half the story. A refinance has real costs, and stretching the loan back out can quietly add interest even while the payment drops. This shows your break-even point and the honest lifetime comparison — both numbers, not just the one that looks good.

Your current loan
$
%
yrs
Roughly how many years remain on your current payoff
The new loan
%
$
Lender, title, appraisal, and related fees
Break-even point
—
Current payment (P&I)—
New payment (P&I)—
Monthly savings—
Cost to recover—
Interest left — current path—
Interest left — new path—
The break-even tells you when, not whether. If you’ll stay in the home well past the break-even point, the monthly savings are real. But notice the two interest lines: resetting a 26-year loan back to 30 can mean paying more total interest even at a lower rate, because you’re borrowing for longer. The fix is often a shorter new term — try 20 or 15 above and watch both numbers move.
Have Matt run your real refinance numbers

This calculator is an educational estimate, not a loan offer. It compares principal and interest only and assumes closing costs are paid separately (not rolled into the loan). “Interest left” compares remaining interest on your current payoff against the full new loan. It does not account for taxes, insurance, PMI, the time value of money, or tax effects. Actual savings and costs depend on current pricing and your specific scenario. Forest Hills Mortgage · Matt Mergo, NMLS #563819. Equal Housing Lender.