Break-even = total closing costs ÷ monthly savings. If you’ll stay past that many months, refinancing saves money. Also weigh whether you’re resetting the term and adding long-run interest.
The break-even formula
Subtract your new payment from your current payment to get monthly savings. Divide closing costs by that number for your break-even months. Stay longer than that and you come out ahead.
Example
Save $250/month with $6,000 in costs: $6,000 ÷ $250 = 24 months to break even. Staying 5+ years means clear savings. We’ll run your exact numbers, including any term reset.
| Input | Effect on payoff |
|---|---|
| Bigger monthly savings | Faster break-even |
| Lower closing costs | Faster break-even |
| Longer time in home | More total savings |
| Resetting to 30 yrs | Adds long-run interest |
Frequently asked questions
Can you calculate my break-even?
Yes — give us your current payment and balance; we’ll show the new payment, savings, and break-even.
Does a lower payment always save money?
Not if you reset a nearly paid-off loan to 30 years — that can add interest. We’ll show total cost, not just payment.
Is the estimate guaranteed?
No — illustrative until appraisal and rate lock confirm the terms.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.