Refinance Break-Even Arizona

A refinance break-even is closing costs divided by the monthly payment reduction. If costs are $6,000 and you save $200 a month, break-even is 30 months. If you will not keep the loan that long, the refinance may not pay for itself.

Include all cash due at closing that you would not otherwise pay: lender fees, title, escrow, prepaid interest, and points if you are buying the rate down. A no-closing-cost refinance just rolls those costs into a higher rate — the break-even math still exists, it just shows up in the rate instead of a check.

Also compare total interest over the time you expect to keep the house, not only the new payment. Restarting a 30-year clock can raise lifetime interest even when the payment drops.

VA IRRRL, FHA streamline, and conventional rate-and-term each have different cost and seasoning rules. Sal can run the actual quotes.

Call or text (516) 250-1334. Educational only. NMLS #1984347.

Ready for real numbers? Tell me about your situation and I’ll come back with actual numbers — start here. Takes two minutes. More detail in the Conventional Loans in Arizona guide. Prefer to talk? Call or text (516) 250-1334, any day, any time. NMLS #1984347.