Refinancing only makes sense when your monthly savings exceed your closing costs over time.
The break-even point shows how many months it takes to recover the upfront cost of refinancing.
Most refinances include closing costs ranging from 2% to 5% of the loan amount.
What is a good break-even time?
Many homeowners prefer under 24–36 months.
Does a lower rate always mean savings?
Not always — closing costs must be considered.