Mortgage Refinance Calculator
Quickly analyze if refinancing your home loan will save you money. Adjust rates, terms, and closing costs to see your break-even point instantly.
Potential Monthly Savings
Break-Even Point
0.8 Years
Time required to recover your closing costs through monthly savings.
Lifetime Savings
$43,092
Total cash saved (or lost) after paying back the entire loan.
Pro Tip: The "Rule of 1%"
Many experts suggest refinancing is worth it if you can lower your interest rate by at least 0.75% to 1% and plan to stay in the home for at least 3 more years.
?What is Mortgage Refinancing?
Mortgage refinancing is the process of replacing your current home loan with a new one. Typically, homeowners do this to secure a lower interest rate, change their loan term (e.g., from 30 years to 15 years), or tap into home equity.
While a lower monthly payment is the most common goal, it is vital to calculate closing costs. Since you are taking out a new loan, you will often pay 2% to 5% of the loan amount in taxes, lender fees, and legal costs.
How to use this tool
Input Current Balance
Enter the exact amount you still owe on your current mortgage.
Set New Terms
Enter the interest rate and term (years) offered by your new lender.
Factor in Fees
Don't forget closing costs! Use our "Roll into balance" toggle to see the impact of financing those fees.
Check the Break-Even
Look at the Break-Even point. If you plan to sell the house before this date, refinancing might cost you more than it saves.
Important Considerations
- •Resetting the Clock: If you are 10 years into a 30-year mortgage and refinance into a new 30-year term, you will be paying interest for a total of 40 years.
- •Private Mortgage Insurance (PMI): If your home value has dropped and your equity is now below 20%, you might be required to pay PMI on the new loan.
- •Credit Score: The best rates shown in advertisements usually require a credit score of 740 or higher.