Home loan refinance break-even

Include closing costs when estimating how many months of payment savings recover those costs.

Refinancing a home loan can change household finances. Treat the break-even math as educational, not a complete set of retirement solutions.

Labels the illustrated state and tax-year pack. This tool’s numbers do not change with state income tax. Medicare, HSA, 401(k), and RMD rules stay federal.

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Example report

Illustrated results

New monthly payment

$1,965

Monthly savings

$196

Break-even

31 months

Interest difference

$58,675

Remaining interest current vs refinance

Assumptions

  • Closing costs of $6,000 are used only for the break-even month estimate.
  • Taxes, points, PMI, and cash-out refinancing are not modeled.
  • Rule year 2026: IRS federal income tax (2026-rev-proc-2025-32) and California state rules (2026-enacted-v1; progressive income tax). Medicare IRMAA, HSA, 401(k), and RMD tables are federal.

Educational planning software—not investment, tax, legal, Medicare, or Social Security advice. Projections depend on your inputs and assumptions. Optional professional review is separate when available.

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