Testing a refinance against time: breakeven, term resets and total cost
Refinancing before a sale
On the bench
If you may sell before the breakeven point, the refinance costs more than it saves. Estimate your likely stay honestly and compare it with breakeven. A no-closing-cost option may fit a short stay better.
Last reviewed against the primary sources listed below.
Ask yourself
- How long will I likely stay?
- What is my breakeven?
Breakeven questions
Should I refinance if I am moving soon?
Only if savings cover costs before you sell.
Is a no-closing-cost refinance better for short stays?
It can be; compare total cost.