Find out exactly how many months until your refinancing savings cover the closing costs. Make a data-driven decision on whether to refinance your CRE loan.
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The break-even point tells you if refinancing is worth it for your timeline.
Refinancing costs money upfront (closing costs, appraisal, legal fees, prepayment penalties). The break-even point is when your cumulative monthly savings equal those upfront costs. After break-even, every month is pure savings.
Refinance when: your break-even is under 24 months, you plan to hold the property well past break-even, rates have dropped 0.75%+ since your original loan, or your property value has increased enough to improve LTV and unlock better terms.
Avoid refinancing when: break-even exceeds your planned hold period, prepayment penalties make costs prohibitive, your current rate is already competitive, or you're within 1–2 years of loan maturity (just let it run out).
Beyond closing costs, factor in: prepayment penalties (yield maintenance, defeasance, or step-down), new appraisal ($3K–$8K), environmental assessment ($2K–$5K), legal fees, title insurance, and any rate lock fees. Our advisors give you a full cost picture before you commit.
Every calculator we offer, in one place — run the next number your lender will ask about.
Common questions about CRE refinancing and break-even analysis.
Under 18 months is excellent, 18–36 months is reasonable for long-term holds, and over 36 months should make you question whether refinancing is worth it. Always compare the break-even to your planned hold period — if you plan to sell in 2 years, a 30-month break-even means you lose money.
Budget 2–5% of the loan amount. Typical costs include: origination fee (0.5–1%), appraisal ($3K–$8K), environmental ($2K–$5K), legal ($3K–$7K), title insurance, recording fees, and survey. SBA refis may include SBA guarantee fees.
Common structures include: yield maintenance (compensates lender for lost interest — can be very expensive), defeasance (replacing your loan with treasury bonds — CMBS), step-down (e.g., 5-4-3-2-1% declining by year), and lockout periods (no prepayment allowed for X years).
A general rule of thumb is 0.75–1.0% rate reduction makes it worth exploring. However, the true answer depends on your loan balance, closing costs, and hold period. A $2M loan with a 0.5% rate drop saves $10K/year — which may justify $30K in closing costs within 3 years.
Yes, but check for prepayment penalties first. Some loans have lockout periods (no prepay for 2–5 years) or expensive yield maintenance clauses. Bridge loans and some portfolio loans have more flexible prepay terms. Our advisors review your current loan docs to identify the true cost.
We analyze your current loan terms, calculate true break-even including all costs, and match you with CRE lenders offering better terms. You get competing offers to compare. Our advisory is free — we are compensated by the lender only when your loan closes.
Our advisors analyze your current loan, calculate true savings, and match you with the best refi lenders — no guesswork, no upfront fees.
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