Breakeven de Refinanciamento

Refinancing break-even formula

Break-even answers a simple question: how many months until the monthly savings cover what you paid at the start? break-even = total refi cost / (old installment − new installment). Cross that point and every month after it is money you keep. Quit before it and you'd have done better leaving the loan untouched. On the up-front side you're looking at origination fees, ITBI where the collateral changes hands, notary, registration, plus whatever new insurance gets attached. The savings part is easier: it's just the gap between the old and new installments.

Suppose the old installment is R$ 2,500, the new one R$ 2,200, and the refi costs R$ 4,500 all in. Break-even = 4,500 / (2,500 − 2,200) = 15 months. If you expect to keep the loan and the property for at least another 15 months, the refinance pays for itself. Trading credit-card debt for a CDC loan usually clears that bar in a handful of months, because the rate gap between the two is so large.

Real-world applications

A few situations come up again and again. Debt consolidation is one: you roll several expensive balances into a single cheaper loan. Moving between SFH and SFI is another, which happens once the outstanding balance drops below the SFH ceiling. Then there's bank-to-bank portability under BCB Resolution 4.762/2019, where the original bank has to match any better offer the borrower brings in from a competitor. Whenever you're weighing whether a lower CET is worth the trouble, the break-even is the number you come back to.

FAQ

What costs should I count in the refi total? Origination fee, ITBI where it applies, notary and registration, the new insurance setup, and any prepayment fee left on the old loan once the mandatory rebate is applied.

Is the break-even the only criterion? No. Check the total interest you'll pay over the remaining term and the new CET as well. A smaller installment sometimes hides a longer term and more interest in absolute terms.

How does portability fit in? Resolution 4.762/2019 lets you move a loan to another bank offering a better rate, and the original bank keeps the right to match that offer. The costs tend to be lower than starting a fresh refi.