Refinancing your mortgage can save money — but only if the timing is right. The decision depends on your interest rate, how long you plan to stay in your home, and how much refinancing will actually cost. Knowing when refinancing makes sense can help you avoid expensive mistakes.
Refinancing is often worth considering when market conditions or your personal finances have improved since you took out your original mortgage.
Refinancing isn’t always the right move. In some situations, the costs can outweigh the benefits.
The break-even point is how long it takes for your monthly savings to cover the cost of refinancing. If you plan to stay in your home longer than the break-even period, refinancing may be worth it.
Calculating this number helps you make a decision based on real savings, not just lower payments.
The best way to decide is to run the numbers. Comparing your current loan to a potential new loan can show how much you might save — or whether refinancing would cost more in the long run.
Use our refinance calculator to compare your current mortgage with a new loan and estimate how long it would take to break even.
Try the Refinance Calculator →