11/29/2025
6.99% mortgage rate.
Bank offered 6.2%.
$300/month savings.
"Should I refinance?"
I had this conversation with a client last week.
She's been sitting on the offer for months.
Scared of the closing costs.
Here's what most people miss:
The closing costs aren't the question. The break-even point is.
Her situation:
→ Monthly savings: $300
→ Closing costs: ~$8,000
→ Plans to stay in the house: 5-10 years
Break-even calculation:
→ $8,000 in costs ÷ $300/month savings = 26.7 months
→ After 27 months, she's making money
If she stays 5 years:
→ Total savings: $18,000
→ Minus closing costs: $8,000
→ Net gain: $10,000
If she stays 10 years:
→ Total savings: $36,000
→ Minus closing costs: $8,000
→ Net gain: $28,000
She's been "thinking about it" for 3 months.
That's $900 already gone.
Here's what we decided:
→ She's staying at least 5 years
→ Break-even is just over 2 years
→ Make the call today
One phone call. One afternoon of paperwork.
$10,000-$28,000 over the next decade.
Avoiding refinancing because of closing costs? Run the break-even math first.
Having a plan? You make decisions based on numbers, not feelings.
What's the break-even point on your refinance?
