Last updated: March 2, 2026

Should You Refinance Your Mortgage?

Formula

Mortgage refinancing replaces your existing loan with a new one, typically at a lower interest rate.

The break-even point tells you how many months until the monthly savings offset the closing costs.

Common use cases:

  • Lowering monthly payments
  • Reducing total interest costs
  • Shortening loan term

Frequently Asked Questions

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