One number decides it: the break-even month
A worked example, using someone else's mortgage
Three years ago a member borrowed $285,000 on a 30-year fixed at 7.125%. Principal and interest came to $1,920.09 a month, and after 36 payments the balance sits at $275,883. Summit quotes 6.375% today with about $3,600 in total closing costs. The question is not whether the rate is better — it obviously is — but whether the saving repays the cost before this member moves.
A fresh 30-year at 6.375% drops the payment to $1,721.24. That is $198.85 a month, and $3,600 divided by $198.85 is 18.1, so the refinance pays for itself in the nineteenth month. Straightforward, and for anyone staying put more than two years, worth doing.
Here is the part the monthly-payment framing hides. The new 30-year adds three years back onto the clock, so the lifetime interest barely moves — about $2,463 saved on a loan with more than $340,000 of interest left. Match the remaining term instead, taking a 27-year, and the payment is $1,786.53, the payoff date is unchanged, and the interest saved climbs to $43,273. Same rate, same closing costs, seventeen times the benefit. Ask for the matched term when you request a quote.
Four ways the same refinance can go
All figures use the $275,883 balance and $3,600 in closing costs from the example above.
Rates current as of July 2026 and subject to change. Figures cover principal and interest only and exclude taxes, insurance and any mortgage insurance. Equal Housing Opportunity Lender. Membership eligibility required. This is a demonstration website; rates, products, and figures shown are illustrative only.
Six situations where we tell members not to refinance
Saying so costs us a loan, which is exactly why it is worth reading.
Ask every lender for the matched term not just the lowest payment
Quotes default to a fresh thirty years because it produces the most attractive monthly figure. Request the term that matches the years you have left and compare that instead. Summit writes fixed terms in one-year increments from ten to thirty years for exactly this reason.
Refinancing with Summit
Can the closing costs go into the loan?
Yes, provided the new balance stays inside our loan-to-value limits, and it still counts as rate and term. Bear in mind you would then be financing those costs for the whole term, which pushes the true break-even further out.
Will I need a new appraisal?
Frequently not. Many rate and term files qualify for an automated valuation, which costs nothing and removes roughly two weeks. We can usually tell you within a day of application which path yours takes.
Could this remove my mortgage insurance?
If the home has appreciated enough for the new loan to land at or below 80% of value, yes. That premium disappearing is a genuine monthly saving and belongs in the break-even calculation alongside the interest.
How long does the process take?
Three to four weeks for most files. Federal law also gives you three business days to cancel after signing on a primary residence, so funds do not disburse until the fourth business day after closing.
Do I skip a mortgage payment?
It can look that way because of how interest is collected at closing, but nothing is forgiven. The interest is settled in the payoff figure, and your escrow account is refunded and rebuilt rather than carried over.
Can I refinance a loan that is not with Summit?
Yes, and most of the refinances we close start somewhere else. Send us the current statement showing your rate, balance and remaining term, and we will tell you plainly whether the move is worth it.
Bring us your statement
Fifteen minutes with a loan officer gets you a real break-even figure, including the case for staying where you are.