Not a generic FAQ. These are the patterns we see repeatedly from people who almost made expensive mistakes.
That's the question every lender wants you to ask, because it makes refinancing look good almost every time. But the real question is: how long until this pays for itself?
If it costs you $8,000 in closing costs to save $120/month, that's a 67-month break-even. Are you staying 67 months? If not, you're paying $8,000 to lose money.
It depends entirely on your timeline. Rolling in costs means your loan balance goes up. If you're selling in 3 years, you just paid for something you'll never recover. You added $10,000 to your balance to save $140/month for 36 months. That's $5,040 in savings against $10,000 in new debt.
If you're staying 10+ years, rolling in costs can make sense because you have time to recoup them. But most lenders won't walk you through that math. They just present it as "no out-of-pocket cost" and move on.
The rate is one lever. It's not the whole story. We've seen clients save meaningfully by dropping PMI, restructuring their loan term, or paying off high-interest debt at closing. None of those had anything to do with the rate itself.
A client last year had a 6.5% rate when rates were at 6.25%. Not a huge drop. But we restructured their loan to drop PMI ($180/month), shortened the term by 5 years, and paid off a car loan at closing. Their total monthly obligations went down $340. The rate barely moved.
That's actually the most important thing to figure out first. Because the right refinance strategy for someone staying 2 years is completely different from someone staying 10.
If you're staying 2 years, you need the lowest-cost option with the fastest break-even, even if the rate isn't the absolute lowest. If you're staying 15 years, you can afford higher upfront costs for a lower rate because you have time to recoup them.
If you're genuinely not sure, we model both scenarios. That way you can see what makes sense in either case and make a decision with clarity instead of guessing.
That's the logic we hear most often from people about to make an expensive mistake. "I'll take this rate now and refi again when rates drop further."
The problem: every refinance has costs. If you refi now for $6,000 in costs, then refi again in 18 months for another $6,000, you've spent $12,000 in two years. Most people don't do that math. They just see two "lower payments" and assume they're winning.
We're not here to convince you we're better than anyone. We're here to show you the full picture so you can decide for yourself.
Big lenders have one set of products. They show you what they have and frame it as the answer. We're not tied to one lender's products, which means we can model multiple paths and show you what each one means for your life over the next 3 to 5 years.
The difference isn't that we have better rates. It's that we ask different questions. When was the last time a lender asked you how long you're staying, what your tax situation looks like, or whether you might want to leave your job in 2 years?
Still have questions? Set up your RefiWatch and we'll walk you through your specific situation. No pressure, no sales pitch.
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