Refinance Calculator
Compare your current mortgage to a new rate and term to see your monthly savings, the break-even point on closing costs, and the lifetime interest difference. Everything runs in your browser.
Compare your loan to a refinance
Example: $300,000 at 7.5% → 6%, $5,000 costs ≈ $363.55/mo saved.
Reading a refinance
A refinance replaces your current loan with a new one, ideally at a lower rate. In the worked example — a $300,000 balance at 7.5% with 27 years left, refinanced to 6% over 30 years with $5,000 in closing costs — the payment drops by about $363.55 a month, and you recoup the closing costs in roughly 1 yr 2 mo. Past that point the savings are yours. These figures come from the same tested engine as the calculator above.
The term reset trap
Lowering your monthly payment by restarting a fresh 30-year term can still increase the total interest you pay, because you stretch the loan back out. If your goal is to save money overall rather than just lower the monthly bill, compare at the same remaining term, or use the savings to make extra principal payments — the Mortgage Payoff Calculator shows that effect.
When refinancing makes sense
The classic guidance is to refinance when you can lower your rate meaningfully and will keep the home past the break-even point. Also weigh how long you plan to stay, whether you're dropping PMI, and whether you're switching loan types. Break-even, not the rate alone, is the number that decides it.
Frequently asked questions
What is the break-even point?
The number of months of monthly savings it takes to recoup your closing costs. If refinancing saves $200 a month and costs $5,000 to close, you break even in about 25 months. Refinancing pays off only if you keep the loan past break-even.
Does a lower rate always mean I should refinance?
Not necessarily. Resetting to a new 30-year term can raise total lifetime interest even at a lower rate, because you restart the clock. Look at monthly savings and break-even together, and consider matching the new term to your remaining years.
What counts as closing costs?
Lender origination fees, appraisal, title insurance, recording, and prepaid items — typically 2–5% of the loan. Some lenders offer "no-cost" refinances that fold costs into a higher rate; enter the true costs here for an honest break-even.
Should I compare the same term?
For an apples-to-apples rate comparison, yes — set the new term to your remaining years. To lower your payment you might extend the term; to save the most interest you might shorten it. The calculator shows both monthly and lifetime effects so you can weigh them.
Not financial advice: a general educational estimate. Actual rates, costs, and eligibility vary by lender and credit profile — get a written Loan Estimate before deciding. Values are processed locally in your browser and never transmitted. See the methodology page.