Refinance Calculator
Compare your current mortgage with a new loan to see how much you could save each month, how long it would take to earn back your closing costs, and how your total interest would change.
When Does Refinancing Make Sense?
A refinance replaces your current loan with a new one. It can lower your rate and payment, shorten your term, or let you take cash out of your equity. The question is whether the savings outweigh the closing costs, and how long that takes.
Enter your current balance, rate, and remaining term, then the new rate, term, and estimated closing costs. The calculator shows the change in your monthly payment, your break-even point in months, and the difference in total interest. If you expect to sell or refinance again before the break-even point, the refinance may not pay off.
Example: Refinancing a $500,000 balance from 7.25% to 6.25% on a 30-year term lowers principal and interest from about $3,411 to $3,079, a savings of roughly $332 a month. With $6,000 in closing costs, the break-even point is about 18 months.
Common Questions
How much does my rate need to drop to refinance?
There is no fixed rule. What matters is the monthly savings compared with the cost and how long you will keep the loan. A smaller rate drop can be worthwhile on a larger balance.
What is a no-cost refinance?
The lender covers your closing costs in exchange for a slightly higher rate. Your break-even point is immediate, which makes it a good fit if you may move or refinance again within a few years.
Does refinancing restart my 30 years?
Only if you choose a new 30-year term. You can refinance into a 20 or 15-year loan, or keep making your old payment on the new loan to pay it off sooner.