Refinance Calculator

When your break-even period (closing costs ÷ monthly savings) is shorter than how long you’ll keep the property. The classic rule of thumb is "refinance if you can lower your rate by 0.75–1%" — but if you’re holding for 10+ years, even a 0.5% drop can pay off.

Break-Even Months = Closing Costs ÷ Monthly Savings. If a refinance saves you $200/month and costs $5,000 to close, you break even at month 25. Hold the property longer than that, and the refinance is profitable.

It compares total payments under the old loan vs. total payments under the new loan plus closing costs. Negative lifetime savings can happen if you reset to a longer term — even with a lower rate, paying for 30 more years instead of 28 can cost more total.

Trade-off. Extending lowers your monthly payment (better cash flow), but you pay more total interest over the life of the loan. For an investment property focused on cash flow, extension often wins. For a property you’ll hold to payoff, keeping the original term is cheaper.

Cash-out refinance rates run 0.25–0.5% higher than rate-and-term refinances. Investment property refinances are 0.5–1% higher than primary residence refinances. DSCR cash-out refinances (popular for BRRRR) are usually the most expensive — but require no income verification.

Typically 2–4% of the loan balance: lender origination (1%), title insurance (0.5%), appraisal ($600–$900), escrow setup ($800), recording fees, and any prepaid taxes/interest. Rolling closing costs into the loan is common but raises the principal.