Enter your current mortgage details and the new rate you've been offered to see your monthly savings, break-even point, and total interest saved over the life of the loan.
| 7.5% → 7.0% | $300,000 | $103 | 58 months | $27,200 |
| 7.5% → 6.5% | $300,000 | $207 | 29 months | $52,800 |
| 7.5% → 6.0% | $300,000 | $312 | 19 months | $76,600 |
| 7.5% → 5.5% | $300,000 | $418 | 14 months | $98,500 |
| 7.5% → 5.0% | $300,000 | $524 | 11 months | $118,400 |
The most important number in any refinance decision is the break-even point — how many months of savings it takes to recoup closing costs. If closing costs are $6,000 and you save $300/month, your break-even is 20 months. If you sell or refinance again before 20 months, you lost money. Always calculate this before refinancing, and add a safety margin: plan to stay at least 1.5x the break-even period. Also consider that resetting to a new 30-year term means more total interest paid, even at a lower rate. Compare total interest paid under both scenarios, not just monthly payments.
