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Refinancing Makes Sense When the Rate Drop Covers Your Closing Costs Within Two Years

Source: Money Crashers · Oct 17, 2026 14:15 UTC

Oil refinery towers and pipes with a city skyline in the distance — File photo Carol M. Highsmith / Library of Congress · Public domain · Source

The Quick Take

Say closing costs come to $4,000 and the new loan cuts your monthly payment by $200. You break even in 20 months, and the $200 you save each month after that is yours. Two years is the bar because nobody... Source

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