Based on your numbers, refinancing could save you money.
Monthly Savings
+$451
Break-Even Period
0.9 years
$2,400
$1,949
+$451
Per month difference
+$81,126
Over loan lifetime
+$71,126
Total cost difference
What this means:
You'll need to stay in your home for at least 11 months to recoup your closing costs of $5,000 through monthly savings. This is a favorable break-even period!
Make sure your break-even period (0.9 years) is shorter than how long you plan to keep the home.
A better credit score can help you qualify for lower interest rates, increasing your savings.
Look beyond monthly payments. Consider the total interest and overall cost of each loan option.
Closing costs of $5,000 can add up. Shop around for the best deal from multiple lenders.