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Refinancing

How to Calculate Your Break-Even Point

The one calculation every refinancing homeowner should run.

4 min readBy NexGen Capital Corp · NMLS 1766649Updated 2026Refinancing

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.

Refinance Break-Even Calculator

Compute the months to recover your closing costs.

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Key takeaways

  • Compare break-even to your time-in-home plan.
  • Exclude escrows from the math.

Frequently asked questions

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.

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