Should I Refinance?

This tool turns the refinance question into a break-even test. It re-amortizes your balance at the new rate with M = P[r(1+r)^n] / [(1+r)^n-1], finds the monthly savings versus your current payment, then divides your closing costs by that savings to get the break-even month. If you plan to keep the home past break-even, the answer leans yes; if you may sell sooner, it leans no.

Suppose you owe $350,000 at 7.50% and can refinance to 6.25%, both 30-year. The payment falls from about $2,447 to $2,155, saving roughly $292 a month. With $7,000 in closing costs, break-even is about 24 months. Staying five years nets around $10,500 in savings after costs, so it is a clear yes; selling within 18 months would be a no.

For South Florida owners the sell-by date drives the decision, since relocation, snowbird schedules, and investment turnover are common. Compare lifetime interest too: a lower rate on a fresh 30-year term can still cost more overall if it restarts the clock. Include Florida closing items like title, recording, and documentary stamp taxes in your cost figure so the break-even is honest.