Home equity loan topics
To determine if the refinance would be beneficial for you, you need to figure out if the costs and savings would be worth it for the time you plan to own the property. Subtract the estimated new monthly payment from your current monthly payment to determine how much you would save each month under the new rate. Then, add up all the costs of the refinancing. The last step is to calculate when you would earn back any refinance expenses incurred, by dividing the costs by the savings. This is called your break even date.