Refinance Calculator
Estimate your new monthly mortgage payment, potential monthly savings, and break-even point based on your current loan, refinance rate, new term, and closing costs.
Enter the remaining balance on your current mortgage.
Enter the interest rate on your current mortgage.
Enter how many years remain on your current mortgage.
Enter the interest rate you expect for the refinanced loan.
Choose the new term length for the refinanced mortgage.
Enter estimated lender fees, title costs, and other refinance costs.
Optional. Enter any extra cash you plan to take out when refinancing.
How This Calculator Works
This refinance calculator compares your current mortgage payment with a potential new payment based on a new interest rate and term. It also estimates how long it could take to recover your refinance closing costs through monthly savings.
Formula
Break-Even Months = Refinance Closing Costs / Monthly Savings
Example
If you have a $280,000 remaining mortgage balance at 7.25% with 26 years left, and you refinance into a 30-year loan at 6.00% with $6,000 in closing costs, your monthly payment may drop. The break-even point depends on how much you save each month.
Frequently Asked Questions
When does refinancing make sense?
Refinancing often makes sense when you can lower your interest rate, reduce your monthly payment, shorten your loan term, or access equity in your home at a reasonable cost.
What is a refinance break-even point?
The break-even point is how long it takes for monthly savings from refinancing to recover the upfront refinance closing costs.
Can refinancing increase total interest paid?
Yes. If you refinance into a longer loan term, your monthly payment may decrease while your total interest paid over time could increase.
Should I include cash-out refinancing?
Yes, if you plan to borrow additional money against your home. A cash-out refinance increases the new loan amount and usually increases the new monthly payment.