How long until a lower rate pays for itself?

How this works

The calculator works out the standard repayment on your balance at each rate over the remaining term, takes the difference as a monthly saving, and divides your estimated switching costs by it. The result is the number of whole months before the saving has covered what the move cost you. If the new rate is not lower, there is no saving to recover the costs and the calculator says so rather than showing a number.

This is the question the refinance savings calculator deliberately leaves out. That one shows the saving alone; a saving is only worth having once it has paid for the switch, and a short break-even is usually a much stronger signal than a large headline saving.

The fee figure is entirely yours to estimate. Discharge fees, new lender establishment and valuation fees and government charges vary by lender, by loan and by state, and LoanTorq is not quoting any of them here. A real refinance review prices the actual costs against the actual saving for your loan, which is what a refinance review with David is for. It also cannot know whether you would actually keep the loan long enough to reach break-even, or whether your current loan carries break costs — a fixed rate often does, and they can dwarf everything else here.