My little passion for home loans
Next, determine how much the fees and costs of the refinancing will run you. The last step is to calculate when you would earn back any refinance expenses incurred, by dividing the costs by the savings. That total number of months is known as the "break even point. " If you think you are going to sell the house before you reach that break even point, then you may not want to refinance. For example, it may take 15 months to recoup the costs of the refinance.