Short answer
The one calculation every refinancing homeowner should run.
Break-even months = total closing costs ÷ monthly payment savings. If you'll stay in the home longer than that, the refi likely pays off.
The formula
Break-even months = total closing costs ÷ monthly payment savings. If you'll stay in the home longer than that, the refi likely pays off.
What to include
Lender fees, title, appraisal, and Florida state fees on the new mortgage. Don't count prepaid escrows — those money is still yours.
Key takeaways
- Compare break-even to your time-in-home plan.
- Exclude escrows from the math.
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Related mortgage option
Ready to apply this to a real loan? Review how Refinancing work in Florida, or estimate your monthly payment before you talk to an advisor.
Sources
Program rules change and individual lender overlays apply. Verify specifics with the agency or with a licensed NexGen Capital advisor before relying on them.
Reviewed by NexGen Capital Corp
Written and reviewed by the licensed mortgage team at NexGen Capital Corp, a Florida mortgage brokerage (NMLS #1766649). Verify our license on NMLS Consumer Access.
Last reviewed: 2026
This article is educational and is not a commitment to lend or an offer of credit. Speak with a licensed NexGen advisor about your own situation.