A lower rate isn't automatically a win — closing costs have to be earned back first. Here's exactly how long that takes, and whether you'll stay long enough.
Current mortgage on the left, refinance offer on the right.
Monthly savings
$410/mo
Break-even point
1 yr 5 mo
Lifetime savings
$65,361
Net of closing costs. The line crosses zero at break-even.
| Monthly payment | Total interest + costs | |
|---|---|---|
| Keep current loan | $2,508 | $477,795 |
| Refinance | $2,098 | $412,434 |
Watch the term: refinancing into a new 30-year loan restarts the clock — most early payments are interest again. A shorter term at a lower rate often wins on lifetime cost even if the payment barely drops.
