Question 1

When does it make sense to refinance?

Accepted Answer

Refinancing typically makes sense when you can lower your interest rate by at least 0.5–1%, plan to stay in the home or keep the loan long enough to pass the break-even point (where monthly savings exceed closing costs), or need to change your loan term. Use a refinance calculator to compare total costs.

Question 2

What is the break-even point on a refinance?

Accepted Answer

The break-even point is the month when your cumulative monthly savings from the new lower payment equal the closing costs you paid to refinance. Before this point, you're still recouping fees. After it, you're saving money every month. It is calculated by dividing total closing costs by your monthly payment savings.

Question 3

Does refinancing to a longer term save money?

Accepted Answer

Refinancing to a longer term lowers your monthly payment but usually increases total interest paid over the life of the loan. It can improve monthly cash flow, but you may pay more overall. Compare the total cost of both scenarios — including principal, interest, and closing costs — to make an informed decision.

Metric	Value
Old Monthly Payment	—
New Monthly Payment	—
Monthly Savings	—
Old Total Interest	—
New Total Interest	—
Closing Costs	—
Net Savings	—

Refinance Calculator

Loan Details

Break-Even

Monthly Savings

Total Savings

New vs Old Payment

Total Cost Comparison

Cumulative Savings Over Time

Refinance Details

Keep / Refinance / Recast — Side-by-Side

Metric	Keep Current	Refinance	Recast
Monthly Payment	—	—	—
Monthly Savings	—	—	—
Total Interest	—	—	—
Upfront Cost	—	—	—
Break-even (months)	—	—	—
Interest Rate	—	—	—