Break-even = closing costs ÷ monthly savings. Include dropped PMI in your savings if applicable — it often shortens payback sharply. Then decide whether to keep 30 years or shorten the term.
The calculation
Subtract the new payment from your current payment for monthly savings (add any PMI removed). Divide closing costs by that figure for break-even months. We also show a 15-year option so you can compare payoff speed.
Example
New rate saves $200/month plus $150 PMI removed = $350 total; with $5,000 costs, break-even is about 14 months. Staying past that means clear savings. We’ll run your real figures.
| Input | Effect |
|---|---|
| Bigger rate drop | Faster break-even |
| PMI removed | Faster break-even |
| Shorter term | Higher payment, less interest |
| Lower costs | Faster break-even |
Frequently asked questions
Can you show my savings?
Yes — send your current payment and balance; we’ll show the new payment, any PMI removed, and break-even.
Should I go from 30 to 15 years?
If you can handle the higher payment, it saves substantial interest. We’ll compare both side by side.
Is the estimate binding?
No — illustrative until appraisal and rate lock.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.