When refinancing pays for itself.
Open the Refinance Break-Even tool →We figure your current monthly payment over the years you have left, and the payment on the new loan you're considering. The difference is your monthly saving. Dividing the closing costs by that saving tells you how many months it takes to come out ahead, your break-even point.
If you'll keep the loan past the break-even point, refinancing pays off. We also show the interest left on each loan so you can weigh a lower payment against stretching the term back out. These are your own loan terms, so there's no rule to cite, just the arithmetic.
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