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Refinance break-even calculator
A refinance isn't "worth it" because the rate is lower — it's worth it if you'll keep the loan longer than it takes the monthly savings to repay the closing costs. That's the only number this calculator cares about.
Break-even point
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- Monthly savings
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- Old payment (P&I)
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- New payment (P&I)
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When a Michigan refinance actually pays
A lower rate alone doesn't justify a refinance — the closing costs do or don't. The only number that matters is the break-even point: how many months of payment savings it takes to earn back what you spend to refinance. Stay past that point and you're ahead; sell or refinance again before it and you've lost money, even at a lower rate.
Two things move the break-even in Michigan specifically: title reissue credits (reusing your existing owner's title policy can cut costs meaningfully) and whether you're also changing the term. Dropping from a 30-year to a 15-year loan can save six figures in lifetime interest, but it raises the payment — so compare the full picture against today's refinance rates, not just the headline number.
Frequently asked questions
How much does it cost to refinance in Michigan?
Most Michigan refinances run $3,500–$6,000 in closing costs, driven by title reissue rates and whether the county requires a new survey. Ask your title company for the "reissue rate" — reusing your existing owner's policy can shave hundreds off, and many borrowers never think to ask.
What is a good break-even point for a refinance?
If you recoup your closing costs within about 24 months and you'll keep the loan longer than that, the refinance usually pays. Beyond roughly three years to break even, the math gets thin unless you're also shortening the term or pulling out equity you need.
Should I refinance to a 15-year loan?
Only if the payment fits. A 15-year loan prices well below the 30-year — currently around 5.72% versus 6.58% on a refi — and saves enormous lifetime interest, but the monthly payment jumps sharply. Run both terms above before deciding.