A Florida mortgage refinance only makes sense if you stay in the loan long enough to recover the closing costs. This calculator finds your break-even month — the point where the money you save each month finally cancels out what you paid to refinance — and your total lifetime savings over the remaining term.
How it works
The tool computes two monthly payments with the standard amortization formula:
M = P * r * (1 + r)^n / ((1 + r)^n - 1)where P is the loan balance, r is the monthly rate (annual rate / 12) and n is the number of months. When the rate is 0, the payment is simply P / n.
It then works out three figures:
- Monthly savings = old payment minus new payment.
- Break-even months = closing costs divided by the monthly savings.
- Lifetime savings = monthly savings times the new term in months, minus the closing costs.
For Florida, refinance closing costs average about 2.7% of the loan (roughly $4,900 on a typical balance), which is the default the tool starts with. Florida charges documentary stamp tax of $0.35 per $100 on the new note plus a 0.2% intangible tax, which inflate refinance closing costs.
Example
Take a Florida loan with a $300,000 balance and 27 years left at 7%, refinancing into a new 27-year loan at 6% with $4,900 in closing costs. The old payment is about $2,063/mo and the new one about $1,872/mo, a monthly saving of roughly $191. Dividing $4,900 by that saving gives a break-even of about 2 years 2 months (26 months total). Keep the loan past that point and you come out ahead — close to $57,142 over the full remaining term.
Notes
This is an estimate for planning only, not financial advice. The amortization math is exact, but real refinance costs in Florida depend on your lender, credit, county recording fees and title charges. The 2.7% closing-cost figure is a statewide average — get a Loan Estimate from a licensed Florida lender for your actual numbers, and remember that a longer new term can increase total interest even when it lowers the monthly payment.