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Randy Mathis
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Should I refinance — and when do I actually break even?

A lower payment isn't automatically a win. Enter your current loan and the rate you've been quoted, and see the break-even month and lifetime interest difference.

Current Loan(s)

First Mortgage
$
%
Payment$0/mo
Total Balance$0
Total Monthly Payment$0

New Loan (Refinance)

%
New Payment$0/mo
APRRate + closing costs0.000%

Current Total Payment

$0

New Payment

$0

Monthly Savings

$0

Break-Even Point

N/A

New payment is higher than current

Lifetime Interest Difference

$0

Current loan(s) vs new loan over full term

For illustrative purposes only. Not a commitment to lend. Actual rates, payments, and costs may vary.

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The short answer: refinance when the savings outlast the cost of getting them. Every refinance has a price — closing costs — and a payoff rate — your monthly savings. The month those cross is your break-even, and it's the single most useful number in the decision.

Why does the calculator show lifetime interest, not just the payment?

Because a smaller payment on a longer clock can quietly cost more in total. The comparison shows both: the monthly difference you feel now, and the lifetime interest difference you pay over the full term. A good refinance wins on the numbers you care about — not just the one that looks best in an ad.

What if I have a second loan or HELOC?

Open the fine-tune section and add it. The calculator blends both balances and payments into your "current" side so the refinance is compared against what you actually pay today.

Illustrative example — not an offer or a rate/APR quote

A homeowner's refinance quote would save $300 per month, and their closing costs work out to 20 months' worth of that savings.

Break-even lands at month 20. Keeping the loan for five years (60 months) puts them 40 months of savings — about $12,000— ahead of the costs; selling after one year would leave them 8 months of savings behind. Whether YOUR savings figure looks like this depends on the rate you're actually quoted — the calculator computes it from your own numbers, with APR shown beside the new payment.

Frequently Asked Questions

When does refinancing actually make sense?
When you'll keep the loan past the break-even point — the month where your accumulated monthly savings exceed the closing costs you paid to get them. If you might sell or refinance again before break-even, the new loan can cost you money even with a lower payment.
How do I calculate my refinance break-even point?
Divide the closing costs by the monthly savings. The calculator does this automatically once you add closing costs in the fine-tune section, and shows the answer in months and years.
Why can a lower payment still cost me more overall?
Restarting a 30-year clock on a loan you've been paying for years stretches the remaining balance over more time. The payment drops, but total interest can rise. That's why the calculator shows the lifetime interest difference next to the monthly savings.
What rate should I enter for the new loan?
The rate you have actually been quoted. The calculator never assumes or suggests a rate — your real quote depends on credit score, equity, occupancy, and program.
Should I refinance to pull cash out, or use a HELOC instead?
If your current rate is well below today's rates, repricing the entire balance just to reach some cash is often the expensive path — a HELOC or HELOAN behind your existing mortgage may win. The cash-out refi vs. HELOC calculator compares those two paths directly.

Calculator results are estimates based only on the numbers you enter and are for educational purposes. Enter the rate you have been quoted — this tool never assumes or suggests a rate. Subject to credit approval. Your home is used as collateral and may be at risk if you do not repay. APR, terms, and repayment structure vary by product.

Rates and program availability may vary based on the state or region in which the financed property is located. This is not a credit decision, an offer, or a commitment to lend. Program restrictions apply.

Randy Mathis | NMLS# 1516760 | Lumin Lending Inc. NMLS# 2716106 | Equal Housing Lender | License information