The refinancing break-even point is the amount of time it takes for your accumulated monthly savings to recover the upfront cost of refinancing. For example, if refinancing costs $6,000 and your estimated monthly savings are $200, it would take about 30 months to recover those costs. However, the calculation should not be viewed in isolation. You should also consider whether the new loan changes your repayment period, total interest, or other costs. If you expect to sell the home before reaching the break-even point, refinancing may not provide enough time to recover the initial expense. Our refinance break-even calculator can help you estimate this period using your own numbers. You can also review refinance costs to understand which expenses should be included in your calculation.

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