What the calculation means
How the simple break-even period is calculated
When the new principal-and-interest payment is lower, the calculator divides closing costs by the estimated monthly reduction. It does not include taxes, insurance, cash-out proceeds, or the time value of money.
If the new payment is not lower, the break-even field displays a dash because this monthly-difference calculation does not apply.
Why the two interest totals are not direct savings
The current loan uses its remaining term, while the new loan uses the selected 15-year or 30-year term. Because the time periods can differ, the page lists each interest total separately without labeling the difference as a benefit.
What is not included
The result excludes property tax, home insurance, mortgage insurance, escrow adjustments, prepayment penalties, cash-out proceeds, and tax effects. A lender's Loan Estimate or Closing Disclosure contains the formal charges.