Refinance
Replacing an existing loan with a new one, typically at a lower rate or different term.
Refinancing costs $3,000-8,000 in closing costs. The breakeven point — when cumulative savings exceed costs — determines whether refinancing is worthwhile. A 1% rate reduction on a $300,000 mortgage saves approximately $200/month, with a breakeven of 15-25 months depending on closing costs. Only refinance if you plan to stay past the breakeven point.
Try it yourself:
Open Refinance Calculator →