Mortgage Refinance Calculator
Compare your current mortgage with refinance options, including monthly savings and break-even point.
Current Mortgage
New Loan Details
Closing Costs
Monthly Savings
Lower payment
Current Payment
Principal & Interest
New Payment
Principal & Interest
Break-Even Point
Time to recover costs
Total Interest Savings
Over life of loan
New Loan Amount
Including closing costs
Loan-to-Value
New LTV ratio
New Loan: Principal vs Interest
Net 5-Year Benefit
Savings minus costs
How it works
A mortgage refinance swaps your current home loan for a new one — usually at a lower rate — for a fee (closing costs). The key figure is the break-even point: how many months of payment savings it takes to recoup those costs. Stay past break-even and you come out ahead.
Break-even point
Break-even (months) = Closing costs ÷ Monthly savings
- Closing costs
- fees to refinance (often 2–5% of the loan)
- Monthly savings
- old payment − new payment
Worked example
- New loan saves $250/month
- Closing costs = $5,000
- Break-even = 5,000 ÷ 250
Break-even at 20 months — worth it if you'll keep the home longer.
Good to know
- A lower rate on a fresh 30-year term can still raise lifetime interest by re-extending the loan — compare total interest, not just the payment.
- Roll-in closing costs increase the balance, so factor that into the savings.
- A cash-out refinance taps equity but raises the balance and payment.
Related Calculators
Frequently Asked Questions
When does refinancing a mortgage make sense?
Common triggers: your rate is meaningfully above current rates (a drop of about 0.75-1 point is a classic threshold), you want a shorter term, or you need to remove FHA mortgage insurance. It makes sense when total savings outweigh closing costs over the time you'll keep the loan.
What is the break-even point on a refinance?
Closing costs divided by monthly savings. If refinancing costs $6,000 and saves $200/month, you break even in 30 months — refinancing pays off only if you keep the loan longer than that. Selling or refinancing again before break-even means you lost money.
What are typical refinance closing costs?
Usually 2-5% of the loan amount, covering origination fees, appraisal, title insurance, and recording costs. "No-closing-cost" refinances roll those costs into a higher rate or the loan balance — you still pay them, just over time.
Does refinancing restart my loan term?
By default, yes — refinancing a loan you've paid for 7 years into a new 30-year term means 37 total years of payments, which can increase lifetime interest even at a lower rate. Compare total interest both ways, or refinance into a shorter term (or keep paying the old payment amount) to avoid the reset.
What's the difference between rate-and-term and cash-out refinancing?
A rate-and-term refinance replaces your loan to change the rate or duration without increasing the balance. A cash-out refinance borrows more than you owe and hands you the difference — useful for renovations or debt consolidation, but it raises the balance and usually carries a slightly higher rate.