Refinance Calculator
See whether refinancing your mortgage saves money: new payment, monthly savings, break-even point on closing costs, and lifetime interest.
Current loan
New loan
Often roughly 2% to 5% of the loan amount
Monthly savings
$265.43
Break-even point
1 yr 11 mo
Lifetime savings
$13,501.99
You'd need to keep the new loan for at least 1 yr 11 mo for the monthly savings to cover the closing costs.
| Current monthly payment (principal and interest) | $2,112.58 |
| New monthly payment (principal and interest) | $1,847.15 |
| Interest left to pay on current loan | $384,476.57 |
| Total interest on new loan | $364,974.58 |
| New loan interest plus closing costs | $370,974.58 |
About this calculator
Refinancing replaces your current mortgage with a new one, usually to get a lower interest rate or a different term. This calculator compares the two loans side by side: the new monthly payment, how much you'd save each month, how long it takes for those savings to repay the closing costs (the break-even point), and whether you come out ahead over the full life of the loan once closing costs are included.
The break-even point is the key number. If you'd sell the house or refinance again before you reach it, the refinance costs more than it saves. A common rule of thumb says refinancing is worth a look when you can cut your rate by about three-quarters of a point to a point, but the real answer depends on your balance, closing costs, and how long you'll stay.
Watch the lifetime number when the new term is longer than what's left on your current loan. Refinancing 27 remaining years into a fresh 30-year loan lowers the payment partly by stretching it out, which can mean paying more interest in total even at a lower rate. Choosing a new term close to your remaining term gives the cleanest comparison.
Frequently asked questions
- What are typical refinance closing costs?
- Closing costs commonly land somewhere around 2% to 5% of the loan amount, covering things like the appraisal, title insurance, origination fees, and recording fees. Your lender's Loan Estimate lists them. Some lenders offer "no-closing-cost" refinances, which usually means the costs are covered by a higher interest rate or added to the loan balance.
- Should I roll closing costs into the loan?
- It avoids paying cash up front, but you'll pay interest on those costs for the life of the loan. It can still make sense, but the break-even calculation is the same: compare the total cost against how long you'll keep the loan.
- Does this include taxes, insurance, or PMI?
- No, it compares principal and interest only, since property tax and homeowners insurance don't change when you refinance. If refinancing lets you drop PMI because your home has appreciated past 20% equity, your real monthly savings will be larger than shown.
- What about a cash-out refinance?
- A cash-out refinance borrows more than you currently owe and gives you the difference in cash. To model one, enter the new, larger balance as the balance and compare payments, but keep in mind that the extra borrowing, not just the rate, drives much of the change.