Should I pay points to lower my refinance rate?

Paying discount points (each equal to 1% of the loan amount) lowers your rate. It makes sense if you plan to stay long enough to recoup the upfront cost through lower monthly payments. Divide the cost of the points by the additional monthly savings they create. If you'll stay in the home past that break-even, buying points adds value.

Mortgage Refinance Calculator 2026 – Is Refinancing Worth It? Savings, Break-Even & Verdict

Refinance Calculator & Decision Engine

All fields in USD · Instant calculation · No data stored

Today's Featured Rate: 6.75%

Current Loan Balance

Current Interest Rate

Remaining Term

yrs

New Refinance Rate

Estimated Closing Costs

Typical range: 2–5% of loan balance. Defaults to $6,000 if left blank.

Lender Credits

Offsets closing costs. Reduces net cost to close.

Discount Points Cost

Added to closing costs. Separate from origination fees.

Monthly PMI (if any)

Pair with Home Value below to check PMI elimination.

Estimated Home Value

State

Mortgage Refinance Summary

Current Payment

—

— % · — yrs left

New Payment

—

— % · — yrs

Monthly Savings

—

/month

Total Savings

—

over remaining term

Net After Costs

—

savings minus closing

Rate Reduction

—

percentage points

Break-Even Timeline

—

Now — —

—

💡

PMI Elimination Possible: —

—

$312Avg. monthly savings for our users

18 moTypical break-even timeline

15,000+Estimates run this year

6.75%Today's featured 30-yr fixed

Decision Guide

When Does Refinancing Actually Make Sense?

Refinancing isn't automatically a good idea just because rates have dropped. The right answer depends on your specific numbers — and on how long you plan to stay in your home.

The clearest case for refinancing is when your new rate is meaningfully lower than your current rate, you can recoup the closing costs well before you'd move, and your financial situation has stayed the same or improved. In US mortgage markets, a 0.75% to 1% rate reduction has traditionally been cited as a useful rule of thumb — but the actual math matters more than any rule.

You should be more cautious if you're within five years of paying off your loan (refinancing resets your amortization, meaning more early payments go to interest), if you're planning to sell in the next two to three years, or if your credit profile has weakened since you originally borrowed. The calculator above accounts for all of these factors.

✅

Strong Case for Refinancing

Rate drops 0.75%+ · Break-even under 24 months · Plan to stay 5+ years · Credit score stable or improved

⚖️

Borderline — Do the Math

Rate drops 0.25–0.75% · Break-even 24–48 months · Uncertain about moving · May eliminate PMI

⛔

Probably Not Worth It

Break-even exceeds 4 years · Near end of loan · Planning to sell soon · Credit has weakened

Key Concept

Understanding Your Break-Even Point

The break-even point is the single most important number in any refinance decision. It tells you exactly how long you need to stay in your home for refinancing to pay off.

Here's how it works: every refinance comes with upfront closing costs — typically $4,000 to $15,000 depending on your loan size and state. Meanwhile, your new lower rate saves you money every single month. The break-even point is simply your total closing costs divided by your monthly savings.

For example, if refinancing saves you $250 per month and your closing costs are $5,000, your break-even is 20 months — just under two years. If you sell or refinance again before that point, you'll have lost money on the transaction. If you stay longer, every additional month puts more money back in your pocket.

Calculate your net monthly savings

Subtract your new monthly payment from your current one. This is before factoring in closing costs.

Determine your net closing costs

Total closing costs plus discount points, minus any lender credits. This is your real out-of-pocket cost.

Divide to find your break-even

Net closing costs ÷ monthly savings = break-even in months. Compare to how long you plan to stay.

Project your total lifetime savings

Monthly savings × remaining months, minus net closing costs. This is your real long-term gain if you stay for the full term.

Cost Breakdown

Closing Costs, Points & Lender Credits Explained

Three cost levers affect the true price of your refinance — and understanding all three is the difference between a good deal and a great one.

Closing Costs

Closing costs cover the hard costs of originating your new loan: lender origination fees, appraisal ($400–$700 in most markets), title search, title insurance, recording fees, and prepaid interest through the end of the closing month. In states like New York and Texas, attorney fees are also required, which can add $1,000–$2,500. Nationally, 2–5% of the loan amount is the standard range.

Discount Points

One discount point equals 1% of your loan amount. Paying points is essentially prepaying interest: you spend money upfront to permanently lower your rate. The typical trade-off is 0.25% rate reduction per point, though this varies by lender. Use our calculator to compare the cost of points against the additional monthly savings they generate — if you're staying long enough, buying points can meaningfully reduce your total interest cost.

Lender Credits

Lender credits work in reverse from points. The lender applies a credit toward your closing costs in exchange for a slightly higher interest rate — essentially rolling some costs into your rate over time. This reduces upfront cash needed, which is valuable if you don't have savings available or plan to sell within a few years. The no-closing-cost refinance is a common version of this structure.

Structure	Upfront Cost	Monthly Payment	Best For
Pay Points	Higher	Lower	Long-term homeowners (5+ years)
Standard Closing Costs	Moderate	Market rate	Most homeowners planning to stay
Lender Credits / No-Cost	Zero or low	Slightly higher	Moving within 3–5 years

Rate Literacy

APR vs. Interest Rate: What's the Difference?

When you're shopping refinance offers, you'll see two numbers: the interest rate and the APR. They're not the same — and confusing them can cost you thousands.

The interest rate is the base cost of borrowing — the percentage used to calculate your monthly payment. It doesn't include fees. Two lenders could offer identical interest rates with wildly different true costs if their fees differ.

The APR (Annual Percentage Rate) includes the interest rate plus most lender fees, origination charges, and certain closing costs, spread over the life of the loan. It's the number Congress requires lenders to disclose because it gives a more complete picture of a loan's true annual cost.

When comparing refinance offers, always compare APRs — especially when one lender is offering a lower rate but higher fees. A 6.5% rate with high origination fees could have a higher APR than a 6.75% rate with low fees. Our calculator uses the interest rate for payment math, but your lender's Loan Estimate (required by law within 3 business days of application) will show you the full APR for comparison.

2026 Market Update

Should You Refinance in 2026? The Rate Environment Explained

After two years of elevated rates, 2026 is bringing a new refinance window for millions of US homeowners who borrowed at peak rates in 2022–2024.

The Federal Reserve's rate-cutting cycle that began in late 2024 has gradually worked its way into mortgage markets. Homeowners who locked in rates of 7% or higher now have a credible path to reducing their payments. The average 30-year fixed rate has been in the mid-to-high 6% range through much of 2026 — still above the pandemic-era lows, but meaningfully below the 7.5–8% peaks of 2023.

The key question isn't whether rates are "low" — it's whether they're low enough relative to your current rate to justify the closing costs. Use our calculator with your actual numbers rather than waiting for a rate level that may or may not arrive.

2026 Refinance Snapshot

Homeowners who borrowed at 7.5%+ are the primary candidates for savings today. The typical break-even on a $350,000 refinance is 18–30 months at current closing costs — well within most families' planning horizon.

~6.75%

30-yr fixed avg (2026)

$200–$400

Typical monthly savings

18–30 mo

Typical break-even range

Loan Term Decision

15-Year vs. 30-Year Refinance: Which Is Right for You?

Choosing the right term is as important as choosing the right rate. The two options serve completely different goals — and the monthly payment difference can be dramatic.

A 30-year refinance maximizes monthly cash flow. Your payment drops the most, your monthly savings are highest, and your break-even timeline is typically shorter. It makes sense if freeing up monthly cash is the priority, or if you plan to invest the difference.

A 15-year refinance minimizes total interest paid. Rates are typically 0.5–0.75% lower than 30-year rates, and you eliminate 15+ years of interest. The trade-off is a significantly higher monthly payment — often $500–$1,000 more per month on a $300,000 loan. It makes sense if you want to own the home free and clear sooner and can comfortably handle the payment.

30-Year Refinance

Best for maximum monthly savings

Lower monthly payment — most cash freed up
Shorter break-even on closing costs
Flexibility to pay extra when you want
Higher total interest over the loan life
Best when monthly cash flow matters most

Lower Rate

15-Year Refinance

Best for paying off faster

Rate typically 0.5–0.75% lower than 30-year
Build equity twice as fast
Dramatically less total interest paid
Higher monthly payment required
Best when long-term wealth building is the goal

Our calculator defaults to your current remaining term. To model a 15-year refinance, simply change the term field to 15 years and compare the monthly payment and break-even results.

Cash-Out Refinance

What Is a Cash-Out Refinance — and When Does It Make Sense?

A cash-out refinance lets you borrow more than you currently owe and take the difference in cash. It's a way to access your home equity — but it comes with important trade-offs.

In a cash-out refinance, your new loan balance is higher than your existing payoff amount. If you owe $250,000 on a home worth $400,000, you might refinance into a $300,000 loan, pay off the original mortgage, and receive $50,000 in cash at closing. This can be used for home improvements, debt consolidation, education expenses, or other large purchases.

The critical difference from a standard rate-and-term refinance: your monthly payment may increase even if you lower your rate, because your loan balance is larger. Cash-out refinances also typically carry slightly higher rates than rate-and-term refinances. They generally require at least 20% equity remaining after the cash-out, meaning you can typically borrow up to 80% of your home's appraised value.

Feature	Rate-and-Term Refi	Cash-Out Refi
Goal	Lower rate / payment	Access home equity
New loan balance	Same or lower	Higher than current
Rate vs standard	Market rate	Slightly higher
Equity required	20% recommended	20% after cash-out
Best for	Reducing monthly costs	Home improvements, debt payoff

Know the Risks

When Refinancing Is NOT Worth It

Refinancing always has a cost. Here are the situations where skipping it — or waiting — is usually the smarter move.

⏱️

You're near the end of your loan

Refinancing resets amortization — your early payments are mostly interest again. If you're 20+ years into a 30-year loan, you've already paid most of the interest. A new 30-year term adds years of interest cost back.

🏡

You plan to move within 2–3 years

If your break-even is 36 months and you sell in 24, you lose money on the refinance. Run the numbers — only proceed if you'll clearly stay past your break-even date.

📉

Your credit score has dropped

If your score has fallen significantly since you originally borrowed, you may not qualify for a better rate — or any rate improvement at all. Check your credit before applying. Improving it first (even 6–12 months) can be worth the wait.

📊

The rate reduction is too small

Dropping your rate by 0.125% on a $200,000 balance saves roughly $15/month — a break-even of 27+ years at $4,000 in closing costs. The math has to work. Use our calculator before committing.

🏦

Your debt-to-income ratio is too high

Most lenders want a DTI of 43% or below. Adding new debt or income changes since your original loan can affect eligibility. If you've taken on a car loan or other debt, verify you still qualify at the new rate before paying for an appraisal.

Before You Apply

Mortgage Refinance Checklist: 10 Questions to Ask First

Run through this checklist before contacting a lender. Answering these questions upfront saves time and ensures you're comparing offers on an apples-to-apples basis.

1
What is my current interest rate?Find it on your most recent mortgage statement or your original loan documents. This is your baseline.
2
What is my current payoff balance?Not your original loan amount — the remaining balance today. Your lender can provide a payoff statement within 24 hours.
3
How many years are left on my loan?Remaining years, not the original term. Factor this into the calculator for accurate savings projections.
4
What is my current credit score?Get a free credit report at AnnualCreditReport.com. Scores of 740+ get the best rates; below 620 makes conventional refinancing difficult.
5
What is my home's current market value?Use Zillow or Redfin as a rough estimate. You need at least 20% equity for a standard refi; 80% LTV or below also eliminates PMI.
6
Am I paying PMI, and will refinancing eliminate it?If your LTV is now below 80% due to appreciation or paydown, a new lender won't require PMI — adding to your monthly savings.
7
How long do I plan to stay in this home?If your break-even is 24 months and you plan to sell in 18, refinancing costs you money. Only proceed if you'll stay past the break-even date.
8
Do I have a prepayment penalty on my current mortgage?Rare but not unheard of on older loans. Check your original note. A prepayment penalty increases your effective closing costs.
9
Am I comparing at least three lenders?According to the CFPB, borrowers who get multiple quotes save an average of $1,500 over the loan life. Get a Loan Estimate from each and compare APRs.
10
Have I entered all of this into the calculator above?The verdict at the top of this page tells you whether your numbers make a Strong, Moderate, or weak case for refinancing before you spend time on applications.

FAQs

Frequently Asked Questions About Mortgage Refinancing

Real answers to the questions US homeowners ask most.

What is a mortgage refinance break-even point?

The break-even point is how many months it takes for your cumulative monthly savings to equal your upfront closing costs. If refinancing saves you $200 per month and closing costs total $4,000, your break-even is 20 months. If you plan to stay in your home longer than that, refinancing typically makes financial sense. Our calculator shows this timeline visually so you can make the call clearly.

How much does it cost to refinance a mortgage in 2026?

Refinance closing costs typically range from 2% to 5% of the loan amount. On a $300,000 mortgage, that's $6,000 to $15,000. Common costs include origination fees, appraisal ($400–$700), title search, title insurance, attorney fees (required in New York, Texas, and several other states), recording fees, and prepaid interest. Some lenders offer no-closing-cost refinances, which roll fees into a slightly higher rate or loan balance.

What credit score do I need to refinance my mortgage?

Conventional refinance loans typically require a minimum score of 620, but scores of 740 or higher qualify for the best rates. FHA Streamline refinances may accept scores as low as 580. VA and USDA programs have separate eligibility requirements. The higher your score, the lower your rate — and the greater your potential monthly savings. If your score has dropped since you originally borrowed, refinancing may not make sense until it improves.

What is the difference between APR and interest rate on a refinance?

The interest rate is the base cost of borrowing, used to calculate your monthly payment. APR (Annual Percentage Rate) includes the interest rate plus lender fees, origination charges, and certain closing costs spread over the loan term — giving you a more complete picture of the loan's true annual cost. When comparing refinance offers from multiple lenders, always compare APRs, not just interest rates. A lower rate with higher fees can cost more than a slightly higher rate with minimal fees.

Should I pay discount points to lower my refinance rate?

Paying discount points (each equal to 1% of the loan amount) permanently lowers your interest rate. This makes sense if you plan to stay in your home long enough to recoup the upfront cost through lower monthly payments. Use our calculator's "Points Cost" field to model this: enter the total dollar amount you'd pay in points and see how it affects your break-even and net savings. If the additional break-even timeline still fits your plans, buying points can provide significant long-term savings.

Can I eliminate PMI by refinancing?

Yes — and this is often an overlooked benefit. If your home's value has risen since you purchased, and your new loan-to-value ratio (balance ÷ home value) falls below 80%, your new lender will not require PMI. This eliminates an additional monthly cost on top of your rate savings. Enter your home value and current PMI in our advanced inputs section, and the calculator will flag this automatically if it applies to your situation.

What is a no-closing-cost refinance?

A no-closing-cost refinance either rolls the closing costs into the loan balance (increasing the principal you owe) or offsets them with lender credits in exchange for accepting a slightly higher interest rate. This eliminates upfront cash requirements and can make sense if you don't have savings available or plan to sell within a few years. The trade-off is a higher monthly payment or a larger loan balance — and greater total interest paid over time. Our calculator models both scenarios through the Closing Costs and Lender Credits fields.

How long does it take to refinance a home?

Most refinances close in 30 to 45 days from application. Some lenders offer accelerated closings in 15 to 20 days for well-qualified borrowers with straightforward loan files. Delays are typically caused by appraisal scheduling, title search issues, or incomplete documentation. Your first reduced payment is usually due approximately 60 days after closing — so the financial benefit arrives quickly once the process completes.

How does refinancing affect my taxes?

Mortgage interest on refinanced loans remains generally tax-deductible for loan balances up to $750,000 (for loans originated after December 15, 2017), subject to IRS rules and whether you itemize deductions rather than taking the standard deduction. Discount points paid on a refinance must be deducted over the life of the loan, not entirely in the year paid — unlike points on a home purchase. Consult a qualified tax advisor for guidance specific to your situation before making refinance decisions based on tax considerations.

How much equity do I need to refinance my mortgage?

Most conventional lenders require at least 20% equity (an 80% loan-to-value ratio or below) for the best rates and no PMI. Some programs allow refinancing with as little as 5% equity, but you'll likely pay private mortgage insurance on the new loan. FHA refinances can go up to 97.75% LTV on Streamline programs. If you're underwater (owe more than the home is worth), FHFA programs like HARP successors may still apply if your loan is backed by Fannie Mae or Freddie Mac.

Does refinancing hurt your credit score?

Yes, but only temporarily and modestly. A mortgage refinance application triggers a hard credit inquiry, which typically drops your score by 5–10 points for a few months. FICO's mortgage rate-shopping window means multiple lender pulls within a 45-day window are counted as a single inquiry — so shopping several lenders doesn't multiply the impact. The new account also temporarily lowers your average account age. Both effects are minor and typically recover within 6–12 months of consistent on-time payments.

What is a cash-out refinance and how does it work?

A cash-out refinance replaces your existing mortgage with a new, larger loan. The difference between the new loan amount and what you owe is paid to you at closing in cash. For example, if you owe $200,000 on a home worth $350,000, you could refinance into a $250,000 loan and receive $50,000 in cash. Most lenders allow you to borrow up to 80% of the home's appraised value. Cash-out refinances typically carry slightly higher rates than rate-and-term refinances and require a new appraisal.

Can I refinance into a 15-year mortgage to pay off faster?

Yes, and it often makes financial sense if you can handle the higher payment. A 15-year mortgage typically offers a rate 0.5–0.75% lower than a 30-year loan, and you pay dramatically less total interest over the life of the loan. The catch: monthly payments are usually $400–$800 higher on a $300,000 loan compared to a 30-year refinance. To model this in our calculator, simply change the "Remaining Term" field to 15 years and compare the new monthly payment against your current one.

What documents do I need to refinance a mortgage?

Standard refinance documentation includes: two most recent pay stubs, W-2s for the past two years, federal tax returns (past two years), two to three months of bank statements, your most recent mortgage statement, proof of homeowner's insurance, and a government-issued photo ID. Self-employed borrowers typically also need two years of business tax returns and a profit-and-loss statement. Having these ready before applying speeds up the process and reduces delays caused by missing documentation.

How can I refinance with bad credit?

Options exist even with imperfect credit. FHA Streamline refinances (for existing FHA borrowers) have minimal credit requirements and no appraisal needed in many cases. VA IRRRL programs similarly offer flexible credit requirements for veterans with existing VA loans. For conventional loans, most lenders need at least a 620 score. If your score is below that, strategies include paying down revolving debt to lower utilization, disputing inaccurate items on your credit report, and waiting 6–12 months while building a perfect on-time payment history — then refinancing.

What is an FHA Streamline Refinance?

The FHA Streamline is a reduced-documentation refinance program for homeowners with an existing FHA-insured mortgage. It typically does not require a home appraisal, income verification, or employment check — just proof that you've been making on-time payments. To qualify, your refinance must result in a "net tangible benefit" (usually a lower monthly payment or moving from an adjustable to a fixed rate). Closing costs still apply, but they can be rolled into the new loan. It's one of the fastest and simplest refinance paths available for FHA borrowers.

What is a VA IRRRL (Interest Rate Reduction Refinance Loan)?

The VA IRRRL — also called a "VA Streamline Refinance" — is a simplified refinance program exclusively for veterans and service members with an existing VA loan. It requires no appraisal, no income verification, and minimal paperwork. The only requirements are that you currently have a VA loan, the new loan reduces your interest rate or moves you from an ARM to a fixed rate, and you certify that you previously occupied the property. The VA funding fee for an IRRRL is 0.5% of the loan amount — significantly lower than other refinance programs.

Can I refinance if I have a second mortgage or HELOC?

Yes, but it's more complex. When you refinance your first mortgage, the new lender will be in the first lien position. If you have a HELOC or second mortgage, that lender must agree to "subordinate" their lien — meaning they accept being second in line behind the new first mortgage. Most second mortgage lenders will agree to subordination, but it adds time and paperwork (typically 1–2 weeks). Some HELOCs require you to bring the balance to zero before they'll subordinate. Factor this into your timeline when planning the refinance.

What is the difference between a rate-and-term refinance and a cash-out refinance?

A rate-and-term refinance simply replaces your existing mortgage with a new one at a better rate or different term — your loan balance stays the same or decreases. The goal is lower monthly payments or less total interest. A cash-out refinance replaces your mortgage with a larger loan, and you receive the difference in cash at closing. It converts home equity into liquid funds. Rate-and-term refinances typically qualify for lower rates and have less stringent LTV requirements than cash-out refinances.

Is refinancing the same as getting a new mortgage?

Functionally, yes — refinancing involves applying for a new mortgage loan, which pays off and replaces your existing one. You go through an application, credit check, underwriting, and closing process similar to your original purchase mortgage. The difference is there's no property purchase transaction involved, and you typically don't need a down payment. Your closing costs (2–5% of the loan) replace the original down-payment-related costs. The new loan clock also restarts — a 30-year refinance means 30 more years of payments from the closing date.

📌 Rates shown on this site are illustrative examples for calculator purposes only. Your actual offered rate will depend on your credit score, LTV, loan size, property type, and the specific lender.

How Mortgage Rates Are Set

Mortgage rates are not set by lenders arbitrarily — they're driven primarily by the 10-year US Treasury yield and the spread that investors demand to hold mortgage-backed securities (MBS). When Treasury yields rise, mortgage rates typically follow. When inflation falls or the economy weakens, rates tend to drop.

The Federal Reserve's federal funds rate influences short-term rates but does not directly control 30-year mortgage rates. However, Fed signals about future rate policy strongly affect market expectations and mortgage rates by extension.

30-Year vs. 15-Year Fixed

Loan Type	Typical Rate Range	Best For
30-Year Fixed	6.25% – 7.50%	Lower monthly payments, long-term stability
15-Year Fixed	5.50% – 6.75%	Pay off faster, less total interest
5/1 ARM	5.75% – 6.50%	Shorter-term ownership, accepts rate risk
FHA 30-Year	6.00% – 7.25%	Lower credit scores, smaller down payments
VA 30-Year	5.75% – 6.75%	Eligible veterans & service members

What Affects Your Personal Rate

Credit Score: The single biggest factor. 740+ gets best pricing; every 20 points below costs roughly 0.125%–0.25%
Loan-to-Value (LTV): Lower LTV = lower rate. Below 80% LTV eliminates PMI and gets you better pricing
Loan Size: Jumbo loans (above $806,500 in most counties in 2025) often carry a slight premium
Property Type: Investment properties and condos typically get higher rates than primary residences
Points: Paying discount points upfront permanently buys down your rate
Lender Competition: Shopping 3+ lenders and negotiating can shave 0.25%–0.5%

When to Lock

Rate locks protect you from increases between application and closing. Standard locks run 30–45 days (matching typical close times). Longer locks (60–90 days) cost more but provide protection. If rates drop significantly after you lock, ask your lender about a float-down option.

Rate vs. APR — Know the Difference

The interest rate determines your monthly payment. APR includes the rate plus lender fees and points spread over the loan term — it's the true cost comparison number. When comparing lenders, compare APRs. A 6.5% rate with high fees can be more expensive than a 6.75% rate with minimal fees.

Both a HELOC and a cash-out refinance let you access your home's equity — but they work very differently. Here's how to choose.

At a Glance

Factor	HELOC	Cash-Out Refinance
Structure	Revolving credit line (2nd lien)	New first mortgage replaces existing
Rate Type	Variable (prime + margin)	Fixed or adjustable
Rate Level	Typically higher (prime + 0.5–2%)	Lower than HELOC
Closing Costs	Low ($500–$1,500)	Higher (2–5% of loan)
Access to Funds	Draw as needed over 10 years	Lump sum at closing
Payment Structure	Interest-only during draw period	Full P&I from month 1
Impact on 1st Mortgage	None — keeps existing rate	Replaces existing mortgage
Best For	Ongoing expenses, flexibility	Large one-time needs, rate reduction

When to Choose a HELOC

You have an existing low-rate mortgage you don't want to replace
You need funds gradually over time (home renovation, tuition, etc.)
You want flexibility to repay and redraw
You need funds quickly (HELOCs often close faster)
The amount you need is relatively small

When to Choose a Cash-Out Refinance

Your current rate is higher than today's rates (you benefit from refinancing anyway)
You need a large lump sum (debt consolidation, major renovation, investment)
You want payment certainty with a fixed rate
You want one mortgage payment instead of two
You plan to stay in the home long enough to recoup closing costs

The Tax Angle

Interest on both HELOCs and cash-out refinances is only deductible if the funds are used to "buy, build, or substantially improve" the home securing the loan (post-TCJA 2017 rules). Interest on funds used for other purposes (debt consolidation, personal expenses) is generally not deductible. Consult a tax advisor for your specific situation.

⚠️ Both products use your home as collateral. Defaulting can result in foreclosure. Only borrow what you can comfortably repay.

Current monthly payment	$2,200
New monthly payment	$1,950
Monthly savings	$250
Closing costs	$6,000
Lender credits	−$1,500
Net closing costs	$4,500
Break-even	18 months