Refinance Calculator
Free mortgage refinance calculator. Compare your current loan to a new rate and term to see your new monthly payment, monthly savings, break-even point, and lifetime interest saved — so you know if refinancing is worth it.
You’d save $339.31 a month and recoup your $4,500.00 in costs in about 13 months — refinancing usually makes sense if you'll stay past then.
Is refinancing your mortgage worth it?
Refinancing replaces your current mortgage with a new one — usually to get a lower rate, a shorter term, or a lower payment. The catch is the closing costs, which can run a few thousand dollars. The key number is your break-even point: how many months of savings it takes to recoup those costs.
What is the break-even point?
It’s your closing costs divided by your monthly savings. If refinancing saves you $200 a month and costs $4,800, you break even in 24 months. If you’ll stay in the home longer than that, refinancing typically pays off; if you might move sooner, it may not.
Should I refinance to a shorter term?
Refinancing from 30 years down to 15 usually raises your monthly payment but slashes total interest. Lengthening the term lowers your payment but can increase lifetime interest even at a lower rate — this calculator shows both so you can compare honestly.
Frequently asked questions
How do I know if refinancing is worth it?⌄
Compare your monthly savings to the closing costs. Divide the costs by the monthly savings to get your break-even point in months. If you'll stay in the home longer than that, refinancing usually pays off.
What are typical refinance closing costs?⌄
Refinance closing costs commonly run about 2–5% of the loan amount, covering lender fees, appraisal, title, and escrow. Some lenders offer 'no-cost' refis that fold the fees into a higher rate.
Does refinancing reset my loan term?⌄
It can. Refinancing into a new 30-year loan restarts the clock, which lowers your payment but can increase total interest. Refinancing into a shorter term saves the most interest but raises the payment.
Will refinancing hurt my credit?⌄
There's a small, temporary dip from the hard inquiry and the new account, but it typically recovers within a few months of on-time payments.
Have another question? Get in touch.