Mortgage Refinance Break-Even
Calculator 2026: Is It Worth It?
With rates dropping to 6.3% average in 2026, millions of homeowners can save by refinancing. Use our calculator to find your break-even point and see if refinancing makes sense for you.
David Rodriguez
Refinance Specialist • December 14, 2025
Refinance Break-Even Calculator 🧮
Your Results
Current Payment
$2586.47
New Payment
$2319.67
Monthly Savings
$266.80
Break-Even Point
30 months
(2.5 years)
Total Lifetime Savings
$72,039
after closing costs
✅ REFINANCING RECOMMENDED: Strong savings with reasonable break-even!
Compare rates from 300+ lenders in 2 minutes
When Does Refinancing Make Sense in 2026? ✅
✅ REFINANCE If:
- ✓Your current rate is 7%+ (2026 avg is 6.3%)
- ✓You can drop your rate by 0.75%+
- ✓You plan to stay 4+ years (past break-even)
- ✓You have 20%+ equity (avoid PMI)
- ✓Your credit score improved since original loan
- ✓You want to switch from ARM to fixed
- ✓You need to remove PMI
- ✓You want to shorten your loan term
❌ DON'T REFINANCE If:
- ✗Your current rate is below 5% (keep it!)
- ✗You're selling within 2-3 years
- ✗Break-even is longer than you'll stay
- ✗You'd extend your loan term significantly
- ✗Your credit score dropped (higher rates)
- ✗You have less than 10% equity
- ✗You recently refinanced (sunk costs)
- ✗Closing costs exceed 2 years of savings
How Much Can You Save? Rate Drop Comparison 💰
| Loan Amount | Rate Drop | Monthly Savings | Annual Savings | 30-Year Savings |
|---|---|---|---|---|
| $300,000 | 7.5% → 6.3% | $248/mo | $2,976 | $89,280 |
| $400,000 | 7.5% → 6.3% | $331/mo | $3,972 | $119,160 |
| $500,000 | 7.5% → 6.3% | $414/mo | $4,968 | $149,040 |
| $600,000 | 7.5% → 6.3% | $497/mo | $5,964 | $178,920 |
| $750,000 | 7.5% → 6.3% | $621/mo | $7,452 | $223,560 |
*Based on 30-year fixed rate mortgage. Actual savings depend on your specific situation.
See your exact savings: Get personalized refinance quotes from top lenders.
Refinance Closing Costs Breakdown 2026 📋
On a $300,000-$500,000 loan (2-5% of loan amount)
💡 Pro Tip: Negotiate Your Closing Costs
Origination fees, underwriting fees, and attorney fees are often negotiable. Get quotes from multiple lenders and ask them to match or beat competitors. You can save $1,000-$3,000 just by negotiating!
How to Refinance in 2026: Step by Step 📝
Calculate Your Break-Even Point
Use our calculator above to see if refinancing makes sense. If break-even is less than how long you'll stay, proceed!
Check Your Credit Score
Pull your credit report. 740+ gets best rates. If below 700, consider improving before applying.
Gather Documentation
Collect pay stubs (2 months), W-2s (2 years), tax returns (2 years), bank statements (2 months), and current mortgage statement.
Compare Multiple Lenders
Get quotes from at least 3-5 lenders. Compare rates, closing costs, and terms. Don't just look at rate—total cost matters.
Lock Your Rate
Once you find the best offer, lock your rate for 30-60 days. Rates can change daily—don't risk losing a good rate.
Complete Appraisal & Underwriting
Lender orders appraisal and reviews your application. Respond quickly to any requests for additional documentation.
Close & Start Saving
Sign closing documents, pay closing costs, and start enjoying your lower payment! First new payment typically due in 30-45 days.
Refinance Break-Even FAQ 2026 ❓
Ready to See Your Refinance Savings? 💰
With rates at 6.3% in 2026, millions of homeowners can save hundreds per month. Compare quotes from top lenders and find your best rate.