Calculate the exact month your mortgage refinance pays off in any state. Enter your loan balance, current and new interest rates, and closing costs — we calculate your monthly savings and precise break-even timeline. Select your state to see state-specific closing cost averages.
The following federal statutes and regulations govern closing cost disclosures, interest rate transparency, and lender obligations in mortgage refinancing across all 50 states. State-specific costs and transfer tax rules appear in your state's calculator.
| Regulation | Citation | What It Governs |
|---|---|---|
| Real Estate Settlement Procedures Act (RESPA) | 12 U.S.C. § 2601 | Requires lenders to provide a Loan Estimate disclosing all closing costs within 3 business days of application |
| Truth in Lending Act (TILA) / Regulation Z | 15 U.S.C. § 1601; 12 C.F.R. § 1026 | Requires disclosure of APR, finance charges, and total loan cost; governs the 3-day right of rescission on refinances |
| CFPB Loan Estimate Form | 12 C.F.R. § 1026.37 | Standardized three-page form listing all estimated closing costs, monthly payment, and cash to close |
| CFPB Closing Disclosure Form | 12 C.F.R. § 1026.38 | Final closing costs provided 3 business days before closing; must match Loan Estimate within tolerances |
Abbreviations: U.S.C. = United States Code · C.F.R. = Code of Federal Regulations · CFPB = Consumer Financial Protection Bureau · APR = Annual Percentage Rate
The break-even point is the month at which your cumulative monthly savings from the lower payment equal the upfront closing costs you paid to refinance. Before that month, you have spent more than you saved. After it, you are in net positive territory. If you sell or refinance again before reaching break-even, the refinance costs you money.
This calculator uses state-specific average closing cost data from LodeStar 2026, expressed as a percentage of the loan amount. The pre-filled value reflects the average for your state — you should replace it with the actual Loan Estimate from your lender, which RESPA (12 U.S.C. § 2601) requires them to provide within 3 business days of your application.
Yes — significantly. States vary in closing costs, transfer taxes, attorney requirements, and recording fees. Some states (Florida, Texas, New York) have substantially higher average closing costs than others. Select your state above to see the state-specific closing cost average pre-filled in the calculator.
The monthly savings figure is the difference between your current monthly principal and interest payment and your projected new payment. It does not include changes in property taxes, insurance, or escrow. The break-even calculation divides your total closing costs by this monthly savings figure.
Refinancing is generally not worth it if your break-even point extends beyond how long you plan to stay in the home, if the rate reduction is less than 0.5%, if you are far into your current loan term (restarting the amortization clock costs significant interest), or if you are rolling closing costs into the loan balance (increasing principal offsets payment savings).
This tool is for informational and educational reference only and does not constitute financial advice. Calculations are estimates based on the inputs provided and state average closing cost data. Actual break-even timelines and savings will vary. Always consult a licensed financial advisor before making refinancing decisions.