$
%
%
$
Often 2% to 5% of the loan
Years
More options· New loan length and lender credits
Years to pay it off
$
From the new lender
Switching saves you
$15,171
Over 7 years, after $6,000 of costs
- New monthly payment
- $2,111 (now $2,312)
- Costs earned back
- After 2 years
What this means
The interest you save covers the $6,000 of costs after 2 years. That’s within the 7 years you’d keep the new deal.
Stay or switch, over 7 years
| Stay | Switch | |
|---|---|---|
| Monthly payment | $2,312 | $2,111 |
| Interest | $165,705 | $144,534 |
| Costs, less cashback | $0 | $6,000 |
| Interest and costs | $165,705 | $150,534 |
| Still owed after 7 years | $271,515 | $267,243 |
Before you switch
- Paying points lowers the rate but raises closing costs: worth it only if you keep the loan long enough.
- A new 30-year loan restarts the clock. Keep your payment the same to stay on track.
Assumptions in this estimate
- Both rates stay the same for the whole period. The saving counts interest and costs only: paying the loan off faster isn’t a cost, as that money becomes your home equity.
- Interest is worked out monthly.