Refinance Calculator
Calculate if refinancing your mortgage will save you money and when you'll break even on closing costs.
Current Loan
New Loan Terms
30 years
Typically 2-5% of loan amount
Optional: Leave at $0 for rate & term refi
Monthly Payment Comparison
Break-Even Analysis
Lifetime Comparison
When Should You Refinance?
Lower Interest Rates
If current rates are at least 0.75-1% lower than your existing rate, refinancing could save you significant money over the life of your loan. Even smaller rate reductions can be beneficial if you plan to stay in your home long enough to break even.
Shorten Your Loan Term
Refinancing to a shorter term (like 30 to 15 years) helps you build equity faster and save on interest, though your monthly payment may increase. This works well if your income has grown since you bought your home.
Cash-Out Refinance
If you have significant home equity, a cash-out refinance lets you borrow against it for home improvements, debt consolidation, or other expenses. The interest is typically lower than credit cards or personal loans.
Consider Closing Costs
Refinancing typically costs 2-5% of your loan amount. Calculate your break-even point to ensure you'll save money before selling or moving. If you plan to stay less than the break-even period, refinancing may not be worth it.