The Crimson Bench

ProMoney · Simulator

Mortgage Refinance Break-Even Simulator

Is refinancing worth the closing costs?

Assumptions

Monthly savings

$331

Break-even

18 mo

Savings over term

$101,365

LineAmount
Current payment$2,407
New payment$2,076
Monthly savings$331
Closing costs$6,000

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Built by The Crimson Bench · Educational model, not financial advice

About the Mortgage Refinance Break-Even Simulator

Compare your current rate to a new one, net of closing costs, to see monthly savings and the break-even month.

It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.

How the Mortgage Refinance Break-Even Simulator Works

The model takes 5 assumptions and returns 3 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.

The Inputs

AssumptionExample value
Loan balance$350,000
Current rate7%
New rate5.5%
Closing costs$6,000
Remaining term (years)27

Worked Example

Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.

Monthly savings

$331

Break-even

18 mo

Savings over term

$101,365

LineAmount
Current payment$2,407
New payment$2,076
Monthly savings$331
Closing costs$6,000

The Operator's Read

You recoup the closing costs in about 18 months — refinance only if you'll stay past that. Resetting the term also matters: a lower rate on a longer clock can cost more total interest. Educational only.

Assumptions & Limitations

  • The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
  • Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
  • It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
  • This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.

Frequently Asked Questions

What does the Mortgage Refinance Break-Even Simulator calculate?

Compare your current rate to a new one, net of closing costs, to see monthly savings and the break-even month. It takes 5 assumptions — Loan balance, Current rate, New rate, Closing costs, Remaining term (years) — and returns Monthly savings, Break-even, Savings over term, along with a full projection table you can export.

How do I use the Mortgage Refinance Break-Even Simulator?

Enter your own figures in the input fields above — Loan balance, Current rate, New rate, and the rest. The model recalculates instantly and shows the resulting Monthly savings and full breakdown. No sign-up needed to run it.

Is the Mortgage Refinance Break-Even Simulator free?

Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.

What's the difference between this and a free calculator?

A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.

Who built the Mortgage Refinance Break-Even Simulator?

The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.

Is this financial advice?

No. The Mortgage Refinance Break-Even Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.

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The Crimson Bench · Est. 2002 · Founded in New York City

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