Refinance Calculator
See whether refinancing your mortgage pays off, compare your current payment with a new rate and term, find the monthly saving, and how many months it takes to recoup closing costs. Calculates in your browser.
Monthly change
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Show the math
Break-even is how long the monthly saving takes to repay the closing costs:
break-even = closing costs ÷ monthly saving
A lower rate cuts the monthly payment, but resetting to a longer term can raise total interest even while the payment falls, so check the lifetime figure too. Rolling costs into the loan removes the up-front cash (immediate break-even) but you pay interest on those costs.
What this does
A refinance calculator shows whether replacing your current mortgage with a new loan pays off. Enter your existing balance, rate, and payment alongside a new rate and term, and it returns the monthly saving and how many months it takes to recoup your closing costs.
How to use it
- Enter your current balance, rate, and remaining term.
- Enter the new rate and term you are offered.
- Add the estimated closing costs.
- Read your monthly saving and break-even point.
How it works
The tool builds both payments from standard amortization, then divides your closing costs by the monthly saving to find the break-even month. It also totals lifetime interest on each loan, so a lower payment from a longer term cannot hide a higher total cost.
Understanding your result
If you will stay in the home past the break-even point, refinancing usually pays off. Weigh lifetime interest too, resetting a 20-year balance into a fresh 30-year term can lower the payment yet cost more overall.
Example
Refinancing a $300,000 balance from 7% to 6% saves roughly $200 a month. With $6,000 in closing costs, you break even in about 30 months, worthwhile if you keep the home longer than that.
Sources & methodology
- Consumer Financial Protection Bureau, Owning a Home, Loan options and the homebuying process
- Freddie Mac, Primary Mortgage Market Survey, Weekly average mortgage rates
Last updated .
Frequently asked questions
How is the break-even point found?
It is your closing costs divided by the monthly payment saving. If new closing costs are $6,000 and you save $250 a month, you break even in 24 months, stay longer than that and refinancing pays off.
Should I roll closing costs into the loan?
Rolling costs in means no cash up front (so break-even is immediate), but you borrow more and pay interest on it. The tool lets you toggle this to compare both approaches.
Does a lower rate always save money?
Not always, resetting to a longer term can lower the monthly payment while raising total interest. Check the lifetime figures, not just the monthly saving.
Is my information saved?
No. Everything is calculated locally in your browser.
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