Compare your current loan to a new one. See your monthly savings, how long until closing costs pay for themselves, and the lifetime interest either way.
It depends on how much your monthly payment drops versus the closing costs. The break-even point shows how many months until the savings cover those costs.
Closing costs divided by your monthly savings — the number of months it takes for the refinance to pay for itself. Staying in the loan past that point is where you come out ahead.
Yes. Extending into a new long term can lower your monthly payment but raise total interest. Check the lifetime difference, not just the monthly savings.
Fees to set up the new loan — such as appraisal, title, and origination — often a few thousand dollars, usually paid upfront or rolled into the loan.