How fees affect break-even
Break-even is basically “how long until savings pay back fees.” This page explains the mechanics so you can sanity-check any refinance quote.
A simple way to think about it
If your payment drops by $40/month and fees are $800, break-even is about 20 months (\(800 / 40\)). If payment doesn’t drop, “monthly savings” may be zero and break-even may not exist.
Two common fee cases
- Paid upfront: you pay the fees now.
- Rolled in: fees increase the new principal, and you may pay interest on them.