$
%
$
Principal & interest only
years
%
$
Typically 2-5% of loan amount
Break-even in 37 months (3.1 years)
Current vs new monthly payment breakdown
7.5% for 27 more years
6.25% for 30 years
When your savings exceed closing costs
Total amount paid over the life of each loan
Current Loan Total
$724,788
New Loan Total
$727,038.87
Interest savings: $-2,251
What these numbers mean for you
You'll save $217.45/month, but it will take 37 months (3.1 years) to break even on the $8000 closing costs.
Over the life of the loan, you'll pay $2251 more than keeping your current loan.
Warning: You're extending your loan by 3 years. While monthly payments may be lower, you'll be in debt longer.
By refinancing from 7.5% to 6.25%, you'll save $217.45/month. After 37 months, you'll have recovered the $8,000 closing costs and start saving $217.45 every month thereafter.
Here are the exact formulas behind your numbers. No black boxes — just math.
New Monthly Payment
Monthly Savings
Break-Even Months
Total Interest Saved
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