Refinance

Compare your current loan to a new rate and see how long it takes to earn back the closing costs.

When a lower payment is worth the closing costs

Simple break-even equals closing costs divided by monthly savings. For example, $6,000 in costs divided by $250 in savings is 24 months. If you expect to sell sooner, those savings may not recover the expense.

A new 30-year term can lower the payment while increasing lifetime interest. Compare the remaining term, new balance, cash paid or financed, points, APR and total interest—not the rate alone. Taxes and insurance do not automatically fall when you refinance.