Breakeven Bench glossary
Key terms
On the bench
These terms come up when testing a refinance against time, each with a primary source.
Last reviewed against the primary sources listed below.
- Breakeven point
- The month when savings from a refinance equal its costs. Source: CFPB: What is a Loan Estimate?
- Term reset
- Starting a new full-length term, which can add years of payments. Source: CFPB: What is amortization? (explained with an auto loan example)
- Closing costs
- Fees paid to complete the loan, shown in section D of the Loan Estimate. Source: CFPB: Loan Estimate explainer
- No-closing-cost refinance
- A refinance where costs are covered by a higher rate or added to the loan. Source: CFPB: How should I use lender credits and points (also called discount points)?