Stay on the Scene With AMC. Movie lovers, get first and behind-the-scene previews of upcoming films, exclusive interviews, and more on our blog. Be in the know before anyone else! Check out what's new this week on AMC Scene.
A true no-cost refinance means you pay no money upfront and neither your loan amount nor your interest rate is increased to build any costs into your new loan. To calculate a break-even point, divide the anticipated total cost of your refinance by the monthly savings on your loan payment.
The open question is whether you will enjoy the benefits of lower rates for long enough to cover that upfront cost. As a hypothetical, a family that took out a $400,000, 30-year fixed-rate mortgage in June 2013 at 4.6 percent could save $187 a month by refinancing $400,000 at a 3.8 percent rate.