The simple calculation
Divide estimated refinance closing costs by estimated monthly payment reduction. The result is a rough number of months to recover those costs from the payment difference.
ILLUSTRATIVE COST COMPARISON
Estimate a simple refinance break-even point.
Compare your own monthly payment and cost assumptions. This is a starting calculation, not a recommendation.
REFINANCE BREAK-EVEN ESTIMATOR
A clearer view of the decision.
Important limitations
This simple calculation does not account for a new loan term, different principal balance, tax treatment, opportunity cost, prepaid escrow, mortgage insurance, costs added to the loan, or how long you will keep the property. It may not fit your situation. Ask a licensed lender or tax professional about your actual numbers.
SIMPLE ESTIMATE · INPUTS STAY IN YOUR BROWSER
Your assumptions
Simple break-even estimate
Enter all three amountsThis simple calculation divides closing costs by estimated monthly payment reduction. It does not account for term changes, principal balance, tax effects, opportunity cost or how long you will keep the property. Not financial or tax advice, a quote, or a recommendation. Your entries remain on this device.
EF
Edge Home Finance, LLC · Company NMLS #891464
Sergio Abbud is listed as licensed in Texas. Individual license number and current status should be confirmed with the lender before publication.