Mortgage Refinancing Explained — When Does It Make Sense?
Explains the refinance break-even formula, the difference between rate-and-term and cash-out refinances, and the hidden cost of resetting your amortization clock when you refinance to a new 30-year term.
What you'll learn
- Break-even formula: closing costs ÷ monthly savings = months to recoup
- Why refinancing to a new 30-year can cost more total interest even at a lower rate
- Cash-out refinance mechanics and the 80% LTV limit
- How to compare "no-cost" refinance offers where fees are buried in the rate