Costs & FeesQuestion 46
How Do I Calculate the Break-Even Point on a Refinance?
Divide total closing costs by monthly payment savings. Example: $6,000 costs / $200/month savings = 30 months to break even. Hold longer than that to profit.
Divide total closing costs by monthly payment savings. Example: $6,000 costs / $200/month savings = 30 months to break even. Hold longer than that to profit.
- What to know: Understand every dollar involved in refinancing to make sure the math works for your Houston rental.
- Houston context: Houston closing costs are competitive with other major Texas markets. Title insurance rates are state-regulated, providing some cost predictability.
- Action step: Negotiate lender fees, shop title companies, and calculate your break-even point before committing to any refinance.
Bottom Line
The true cost of refinancing goes beyond the rate — factor in all closing costs and calculate how long it takes to recoup them through lower payments.