Question 1

When does it make sense to refinance?

Accepted Answer

Refinancing typically makes sense when you can lower your rate by at least 0.5-1%, you plan to stay in the home long enough to pass the break-even point, and closing costs are reasonable (2-5% of loan amount).

Question 2

What is the break-even point?

Accepted Answer

The break-even point is the number of months it takes for your monthly savings to recoup the closing costs of refinancing. If you plan to move before this point, refinancing may not be worth it.

Question 3

Does refinancing extend my loan term?

Accepted Answer

It depends. You can refinance into any term — a new 30-year, a 15-year, or match your remaining term. A shorter term means higher payments but less total interest. Our calculator lets you compare any scenario.

Question 4

What are typical refinance closing costs?

Accepted Answer

Refinance closing costs typically range from 2-5% of the loan amount, or $3,000-$15,000 for most loans. This includes origination fees, appraisal, title insurance, and other charges.

Refinance Calculator

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Refinance Calculator

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