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Current Loan

$
%
$
Include principal, interest, taxes & insurance

New Loan

%
$
Typically 2-5% of loan amount
Monthly Savings+$292per month
Current Payment$1,995
New Payment$1,703
Break-Even Point18 months
Closing Costs$5,000
Total Savings (Lifetime)+$1,824,645
New Payoff DateJan 2029
Refinancing Makes Sense

You'll recover closing costs in 18 months and save money long-term.

When to Consider Refinancing

  • Lower Interest Rate: If current rates are at least 0.5-1% lower than your existing rate.
  • Change Loan Term: Switch from 30-year to 15-year to save on interest.
  • Cash Out: Tap into your home equity for major expenses.
  • Remove PMI: Refinance when you've reached 20% equity.

Costs to Consider

  • Closing Costs: Typically 2-5% of loan amount, includes appraisal, origination, and title fees.
  • Break-Even Point: How long until monthly savings cover closing costs.
  • Reset the Clock: Starting a new 30-year loan means more interest over time.
  • Prepayment Penalties: Check if your current lender charges fees for early payoff.