Allen Markel, REALTOR® · Texas Premier Realty

Owning

Refinance breakeven

Whether a refi pays for itself, and how fast.

Refinance breakeven

22 months to break even

Payment today (P&I)
$2,281
New payment (30-yr, P&I)
$2,002
Monthly savings
$280/mo

Staying past the break-even makes the refi worth the closing costs. Note a new 30-year clock restarts amortization — ask about matching your remaining term instead.

We’re not a lender — this is a budgetary comparison. Real refi quotes include escrow, rate locks, and payoff timing — we’ll introduce you to a lender who’ll run the exact numbers.

Talk to a lender

These are the lenders Allen works with. For any lender you’d like to talk to, tap Make introduction — we’ll make the introduction for you.

Allen Markel is a licensed Texas REALTOR®, not a mortgage lender or loan originator. He does not quote rates or terms and does not decide whether you qualify — only a lender can do that. Introductions are a courtesy; you choose who to work with.

Numbers raising questions? Walk through them with a person.

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Questions about Refi

What it does

  • What does the refinance breakeven calculator tell me?

    It estimates how many months it takes for the monthly savings from a new loan to pay back the closing costs of refinancing. It also shows your payment today, the new payment and the monthly savings. It is a budgetary comparison, not a quote.

  • What does breakeven mean for a refinance?

    Breakeven is the point where your total savings from the lower payment equal what you paid in closing costs. Before that point you are behind, and after it you are ahead. Staying past it is what makes the refinance worth the costs.

The inputs

  • What closing costs should I enter?

    Enter the total cost of the refinance that your lender quotes you. The calculator uses it to work out how long the savings take to cover it. If you do not have a quote yet, try a few different amounts and see how the breakeven moves.

  • Which balance and years left should I use?

    Use your current principal balance and the years left on your existing loan, both from your latest mortgage statement. Your current rate comes from the same statement. The tool compares the payment you have now with the payment on a new loan at the new rate.

  • What new rate should I put in?

    Use a rate a lender has actually quoted you, not a hope. A small difference in the rate can change the breakeven a lot. Try a slightly higher new rate to see whether the refinance still makes sense if the quote comes in less favorable.

Reading the result

  • How do I read the months to break even number?

    It is how many months of savings it takes to pay back the refinance costs. Compare it to how long you plan to keep the loan or the home. If you expect to move or refinance again before that point, the refinance may not pay for itself.

  • Why is the new payment based on a 30-year loan?

    The tool compares your payment today with the payment on a new 30-year loan. A new 30-year loan restarts the clock on paying down the balance, which can lower the payment but add interest over time. The page suggests asking about matching your remaining term.

  • Is a lower monthly payment always a good reason to refinance?

    Not by itself. A lower payment can come from a longer term, which may cost more interest over time, and from closing costs you have to pay back first. Look at the breakeven, how long you will stay, and the total picture. Talk to a lender about your options.

Limits

  • What does the refinance calculator not include?

    It does not include escrow, rate locks or payoff timing, which real quotes do. It looks only at principal and interest. A lender can run the exact numbers for your loan, and we can introduce you to one.

  • Will the refinance calculator tell me whether I qualify?

    No. We are not a lender, and only a lender can say whether you qualify and at what rate. The calculator only compares payments and costs. Getting a real quote is the next step if the idea looks worth pursuing.

  • What if I plan to sell soon?

    If you may sell before the breakeven point, a refinance may not pay for itself. The calculator can show you how many months you need to stay. If a sale is possible, talk to us before you pay for a refinance.

Next steps

  • What should I try with the refinance calculator?

    Run it with a few different closing costs and new rates, and note how the breakeven moves. Then ask a lender for a real quote, including whether you can keep your remaining term. The sooner you check, the sooner you stop paying a rate you did not need to.

  • Is the early payoff calculator a better fit than refinancing?

    They answer different questions. Refinancing changes the rate and costs money upfront. Early payoff keeps your loan and sends extra to principal. Try both calculators, then talk to a lender about which fits your goals.

Using the tool

  • How do I know if a refinance is worth it?

    Compare the monthly savings to the costs of the new loan. Divide the cost by the savings and you get the months to break even, which is what the calculator shows. If you may move before then, a refinance may not pay off. A loan originator can price a refinance and tell you the actual costs.

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