Should I Refinance? A Tampa Refinance Analysis
A refinance makes sense when what you save beats what it costs, within the time you'll actually keep the loan. Divide your total closing costs by your monthly savings to get your break even in months. If you'll keep the loan well past that point, and the new loan doesn't quietly add years of interest, it's worth a closer look. Josh Jampedro at Home Loan Advisors runs that math for Tampa Bay homeowners, side by side, before anyone pulls credit.
Get Your Refinance Analysis Apply Now
Run your break even
Refinance Break Even Calculator
Estimates for illustration only, based on the numbers you enter. This is not a loan offer, a rate quote or a commitment to lend. Your actual payment, costs and terms will depend on your loan, credit and property. As a result of refinancing, your total finance charges may be higher over the life of the loan.
The three numbers that decide it
- Break even. Closing costs divided by monthly savings. Shorter is better, and it has to be shorter than the time you'll keep the loan.
- Total interest over your real time horizon, not the full 30 years. Restarting a 30 year term can lower the payment and still cost more.
- What happens to your cash. Rolling costs into the loan, paying points or taking cash out each changes your liquidity differently.
A Tampa example
A Westshore homeowner has a $400,000 balance. A new loan would cut the payment by $250 a month and cost $7,500 to close. Break even is 30 months. They plan to stay at least seven more years, so the refinance clears the bar. But the new loan restarts a 30 year term. Shortening the new term keeps most of the savings without adding years of payments. That's the kind of trade off the analysis puts on paper.
Illustrative example, not a specific client.
When refinancing doesn't make sense
- You'll likely sell or refinance again before you break even.
- The savings come only from stretching the term.
- You're paying points you won't keep the loan long enough to recover.
If the numbers say wait, we'll tell you, and set a target so you know when it starts to make sense.
Frequently asked questions
How do I calculate my refinance break even?
Divide total closing costs by your monthly payment savings. $6,000 in costs and $200 a month in savings is a 30 month break even.
Is a lower rate always worth refinancing for?
No. It depends on closing costs, how long you'll keep the loan and whether the new term adds years of payments.
Does a refinance analysis affect my credit?
No. The analysis uses your current loan details and your goals. Credit is pulled only if you decide to apply.
Should I refinance into a shorter term?
Sometimes. A shorter term usually raises the payment but can save a large amount of interest. The analysis shows both side by side.
Can I refinance an FHA or VA loan?
Often, yes. Streamline options may exist for FHA and VA loans, depending on your loan and eligibility. Josh will compare them with a conventional refinance.
Get Your Refinance Analysis Apply Now
Related: Strategic Mortgage Planning · Cash Out Refinance vs. HELOC · Pay Off Your Mortgage or Invest? · Refinance Loans
As a result of refinancing, your total finance charges may be higher over the life of the loan. Reduction in payments may reflect longer loan terms and higher interest charges over the life of the loan. For informational purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Home Loan Advisors LLC is a DBA of Go Rascal Inc. | Company NMLS #2072896 | Josh Jampedro, Branch Manager, NMLS #1082889. Equal Housing Opportunity.
