When should I refinance?

Refinancing makes sense when monthly savings exceed closing costs before you sell or pay off the loan. Compare your current rate and balance against the new offer, including realistic closing costs and how long you plan to stay.

Break-even is the number of months until monthly payment savings recoup refinance closing costs. Divide total closing costs by monthly savings. If you move before break-even, refinancing may not pay off.

Does refinancing restart the clock?

A new loan term may increase total interest paid even if the monthly payment drops, because you extend the repayment timeline. Compare total interest on both loans, not just the payment difference.