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Refinance break-even

A lower rate is not free. Lenders charge closing costs. Divide those costs by the monthly payment cut. That is how long you need to keep the new loan before the paperwork has paid for itself — if the new payment really is lower, and if you do not sell or refinance again first.

This ignores tax effects, points bought or sold, and whether the new loan resets the clock to 30 years — resetting the term can raise total interest even when the monthly bill falls. Default new rate is the latest Freddie Mac 30-year average. Not advice to refinance or to wait.

HELOC vs. cash-out refinance