Refinance
Break-Even Math

The simple version

Break-even = closing costs ÷ monthly savings. If a refi costs $5,000 to close and saves you $250/month, break-even is 20 months. If you'll keep the home longer than that, the refi pays back. If you might sell or refinance again sooner, it doesn't.

This tool factors in Florida's doc stamp tax and intangible tax — usually $1,500-$3,500 of additional FL-specific cost most refi calculators miss.

When refinancing makes sense

• Rate-and-term refi. Current rate at least 0.5-0.75% below your existing rate, and you'll keep the home through break-even.
• Drop PMI. If you've hit 20% equity, refinancing into a no-PMI loan can save $80-$300/month — even at the same rate.
• Cash-out for high-return use. Pulling equity for an investment property, business capital, or paying off 22% credit card debt usually pays back fast.
• Switch from ARM to fixed. If your ARM is about to adjust higher, locking in a fixed rate even at a small premium can be worth it.
• Shorter term. Refinancing from 30-year into 15-year usually costs more monthly but saves enormous total interest.

When it doesn't

• Rate improvement under 0.5%.
• You'll sell before break-even.
• Cash-out for vacation or depreciating assets.
• Your existing rate is already at or below current market.

Florida refi-specific costs

• Doc stamp tax on the new mortgage: $0.35 per $100 of mortgage amount. On a $350K refinance, that's $1,225.
• Intangible tax: $0.20 per $100 of loan amount. On a $350K loan, that's $700.
• These are state-specific to Florida and most national refi calculators don't include them.

FAQ