How Long to Recoup Refinance Costs
Recoup time is break-even phrased as a planning question: how many months until monthly savings pay back closing costs? This worked example uses $290,000 at 7.125% with 23 years remaining, a new rate of 6.25% over 30 years, and $5,500 paid up front.
The cumulative savings table lists each month through break-even — monthly savings and running total — so you can see exactly when costs are recovered. If the new payment is higher, break-even reports never rather than a nonsense negative month.
Controls below match your quote. A4 paper default on this variant for printers outside North America. Not financial advice.
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Current monthly payment: $2,139.42
New monthly payment (30 yr): $1,785.58
Monthly difference: $353.84
Same remaining term at new rate: $1,983.24 per month
Break-even: Month 16
Remaining interest on current loan: $300,477.59
Total interest on new loan: $352,808.59
Lifetime interest difference: $-52,331.00
Closing costs ($5,500.00) paid up front; new loan balance $290,000.00.
This is an estimate for planning, not financial advice.
Cumulative savings through break-even
| Month | Monthly savings | Cumulative savings |
|---|---|---|
| 1 | $353.84 | $353.84 |
| 2 | $353.84 | $707.68 |
| 3 | $353.84 | $1,061.52 |
| 4 | $353.84 | $1,415.36 |
| 5 | $353.84 | $1,769.20 |
| 6 | $353.84 | $2,123.04 |
| 7 | $353.84 | $2,476.88 |
| 8 | $353.84 | $2,830.72 |
| 9 | $353.84 | $3,184.56 |
| 10 | $353.84 | $3,538.40 |
| 11 | $353.84 | $3,892.24 |
| 12 | $353.84 | $4,246.08 |
Showing first 12 of 16 months. Download PDF or CSV for the full table.
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