Current vs New · Break-Even · Total Savings
| Rule | Details |
|---|---|
| Rate drop ≥ 0.75-1% | Generally worth refinancing if rate drops 0.75%+ |
| Break-even < time you'll stay | If break-even is 24 months and you'll stay 5+ years → do it |
| Don't restart at 30 years | If you're 5 years in, consider a 25-yr or 15-yr refi |
| Factor in closing costs | $3,000-8,000 typical — must be recouped through savings |
| Cash-out refi: be careful | Borrowing equity resets your mortgage — use wisely |