Mortgage Refinance Calculator
Compare your current loan with a new one to see your monthly savings, total interest savings, and how long it takes to break even on closing costs.
What This Means
How to Decide Whether to Refinance
Refinancing replaces your current mortgage with a new loan, ideally at a lower interest rate or a different term. The two numbers that matter most are monthly savings and your break-even point — the number of months it takes for those savings to repay your closing costs.
If your break-even point is 24 months and you expect to stay in the home for five years, refinancing is likely worthwhile. If you plan to sell or move in 18 months, the closing costs may not be recovered. Many lenders suggest a rule of thumb that refinancing makes sense when you can reduce your rate by at least 0.5% to 1%, but the break-even calculation is the more reliable guide.
What Closing Costs Should You Expect?
Refinancing typically costs between 2% and 6% of the loan amount, covering origination fees, an appraisal, title search and insurance, and recording fees. You can pay these out of pocket, roll them into the loan balance, or accept a slightly higher rate in exchange for a lender credit. Each choice changes the long-term math, so compare the options carefully.
Considerations Beyond the Rate
A lower monthly payment isn't the only goal. Some homeowners refinance from a 30-year to a 15-year term to pay off the loan faster and reduce total interest, even if the monthly payment rises. Others refinance to remove PMI once they've built enough equity, or to switch from an adjustable-rate mortgage to a fixed rate for stability. Use the numbers to guide the decision, but weigh them against your own timeline and financial goals.