The decision to refinance a home mortgage can involve many factors. You might want to take cash out of your home at when you refinance to use for other purposes. But the most common purpose is to obtain a lower interest rate and lower monthly payments. In the latter case, the decision to refinance should be based on lowering the overall mortgage costs and breaking even on the refinance in a reasonable period of time.
Time to Refinance?
Time to Refinance?
Current Loan
Loan Amount
$ 175,000
Monthly Payment
$ 1,250.00
New Loan
Loan Amount
$ 176,500
Monthly Payment
$ 936.73
By refinancing, you will save $313 per month. Based on those monthly savings, it will take you 5 month(s) to recover your closing costs and break even on your refinancing.