Calculate how long it will take to recover your refinancing costs
Include all fees: origination, appraisal, title, escrow, etc.
The difference between your old and new monthly payment
What is the break-even point? It's the time it takes for your monthly savings to equal the upfront cost of refinancing. After this point, you're in the green — every month of savings goes straight to your pocket.
Factors to consider: The break-even calculation assumes you'll keep the new loan for the full period. If you plan to sell or refinance again before breaking even, you may not realize the full savings.
Ways to reduce break-even time: