Break-even and lifetime interest
Refinance
Closing costs, points, cash-out, break-even (payment-based and true interest-based) and total interest comparison.
Current loan
$
%
$
New loan
%
$
%
$
$
months
Monthly savings
$349.74
$2,566.32 → $2,216.58 P&I
Payment break-even
1 yr 4 mo
Costs $5,500
True break-even
1 yr 3 mo
Interest + MI saved vs costs
Net at 7 yr
+$24,952
Refinance comes out ahead
Cumulative interest + MI (+ upfront costs)
New loan amount $360,000
Interest left on current loan $502,287
Lifetime interest on new loan $437,971
Payment break-even can be misleading when a refinance restarts a 30-year clock. True break-even compares the interest and MI you actually pay, plus any costs added to your balance.