When refinancing pays
A refinance makes sense if you will keep the home longer than the break-even point (closing costs ÷ monthly savings). Restarting a 30-year term can lower the payment but raise total interest.
FAQ
Is a 1% lower rate worth refinancing?
Often yes on a large balance if you stay past the break-even, which is commonly 2–4 years.
Sources (checked Nov 6, 2026): Standard amortization; CFPB refinance guide.