even from the anticipated stay and this homeowner could save $5,400-which makes refinancing a very attractive option. (The $5,400 savings = $200 a month in savings x 27 months [the length of time in the home after the break-even point]).
1. Current Monthly Mortgage Payment $ 1,200
2. New Monthly Mortgage Payment $ 1,00
0
3. Monthly Savings $ 200
4. Total Refinancing Costs $ 1,800
(Don’t forget to include everything, including points, legal fees, credit check, inspections, etc.)
5. Break-even Point 9
(Divide Line 4 by Line 3. This is how many months it will take to recoup refinancing costs)
6. Future Time In Home (in months) 36
(Example: If you plan to live in your home for three more years, enter 36 months)
7. Total Savings (Loss) to Refinancing $ 5,400
