What is a refinancing break-even point?

A refinance break-even point is when the savings from your refinance through lower payments exceeds the cost of the refinance.

How do I calculate my refinance break-even point?

To get your refinance break-even point, divide the cost of the refinance by your monthly savings. For example, if a refinance costs $4,500 and the monthly savings from the refinance is $450, the break-even point is 10 months ($4,500/$450=10). After the 10-month mark, you can start pocketing the $450 in monthly savings.

Can I refinance without paying closing costs?

Yes. Some lenders offer mortgage refinancing with no closing costs, but the trade-off may be a higher interest rate. Alternatively, you can refinance your FHA loan using an FHA Streamline Refinance, which has no closing costs. But there is no cash-out option, and you still have to pay MIP and a new upfront mortgage insurance fee.