When refinancing makes sense
A common rule is that a refinance is worth it if you will stay in the home past the break-even point: closing costs ÷ monthly savings.
Example
A $300,000 balance with 300 months left, going from 7.5% to 6.25% with $6,000 in closing costs: the payment drops about $238 a month, and you break even in 26 months.
Frequently asked questions
Should I reset to a new 30-year term?
It lowers the payment but can raise total interest. Compare the total cost line.
See also
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.