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Home & Mortgage

Refinance Calculator

See whether refinancing your mortgage is worth it. Compare your current loan to a new rate and term, and find the break-even point after closing costs.

Current & new loan

Compare your existing mortgage to a refinance, including closing costs.

%
months
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months

Lender + third-party fees.

Should you refinance?

You break even after

1 year, 4 months

saving $390.44/mo · recoup $6,000 in closing costs by then

Current payment

$2,069.18

New payment

$1,678.74

Lifetime interest change

$10,408

If you'll stay in the home past the break-even point, refinancing pays off. Extending the term can lower the payment but raise lifetime interest — watch that number, not just the monthly savings.

Two questions refinancing has to answer

First: does the new loan lower your payment? Second: will you stay long enough to recover the closing costs? This calculator answers both — the monthly savings and the break-even point — so you're not guessing.

Don't let a lower payment fool you

A refinance that resets a 25-year-remaining loan to a fresh 30 years can lower the monthly payment while adding interest overall. That's why the calculator also shows the lifetime interest change. Refinancing to a shorter term, or keeping extra payments going, avoids the trap.

Example

Drop a $280,000 balance from 7.5% to 6.0% and you might save roughly $250 a month. On $6,000 of closing costs, you break even in about two years — worth it if you'll stay well beyond that.

Related tools

Recalculate your new payment in full with the mortgage calculator, estimate the upfront cost with the closing cost calculator, or see the new payoff schedule with the amortization schedule.

Related calculators

Mortgage CalculatorFull monthly payment — principal, interest, taxes, insurance, and PMI.Closing Cost CalculatorEstimate the upfront fees to close on a home purchase.Amortization Schedule CalculatorFull month-by-month principal and interest breakdown for any loan.Home Affordability CalculatorThe home price your income and debts can support.

Frequently asked questions

When is refinancing worth it?
When you’ll stay in the home past the break-even point — the month when accumulated monthly savings finally exceed your closing costs. If you plan to move or pay off the loan before then, refinancing loses money.
What is the break-even point?
Closing costs divided by monthly savings. If refinancing saves $200 a month and costs $6,000 to close, you break even after 30 months. After that, the savings are yours.
Does a lower monthly payment always mean I’m saving?
No. Refinancing into a longer term can lower the payment while increasing total interest, because you’re stretching the loan back out. Watch the lifetime interest figure, not just the monthly number.
How much does it cost to refinance?
Closing costs typically run 2%–6% of the loan amount, covering the lender fee, appraisal, title, and other charges. Some lenders offer “no-cost” refinances that roll the fees into a slightly higher rate.