Break-Even Point
Lending & MortgagesThe point at which total costs equal total revenue or savings — when refinancing, the month your savings exceed closing costs.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding break-even point helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how break-even point impacts your specific situation.