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Mortgage Glossary

Break-Even Point (Refinance)

Mike Starr·Reviewed August 2026

The break-even point in a refinance is the number of months it takes for the accumulated monthly savings from a lower payment to equal the total closing costs paid. For example, if closing costs are $5,000 and monthly savings are $200, the break-even point is 25 months. If you plan to stay in the home longer than the break-even period, refinancing is generally financially beneficial.