Refinance Calculator
See whether refinancing your mortgage pays off: your new payment, monthly savings, break-even month on closing costs, and what it costs over the life of the loan.
Does refinancing pay off for you?
A refinance replaces your mortgage with a new one, ideally at a lower rate. It costs money up front, so the question is how long it takes for the lower payment to repay those costs. Enter your current loan, the new rate and term, and the closing costs from your Loan Estimate. For current rates, see refinance rates today and mortgage rates.
What the results mean
- Break-even: closing costs divided by the monthly saving, the standard simple method.
- Net after the years you keep the loan: payments saved, minus cash costs, plus or minus the difference in the balance you would owe at that point.
- Lifetime cost change: every remaining payment on your current loan compared with every payment on the new one plus cash costs.
To take cash out instead, compare a cash-out refinance with a HELOC in our home equity comparison.
Frequently Asked Questions
How do I calculate the break-even point on a refinance?
Divide your total closing costs (including any points) by how much your monthly payment drops. If the refinance costs $6,000 and saves $368.77 a month, you break even after about 17 months (16.3 months, rounded up). This calculator does that and also shows the change in the balance you would owe.
Is it worth refinancing for a 1% lower rate?
It depends on your closing costs and how long you keep the loan, not on a rule of thumb. Enter your own balance, rates and costs: if you will stay past the break-even month, the refinance usually pays off.
Should I add closing costs to the new loan?
Rolling costs into the loan means no cash at closing, but you borrow more and pay interest on the costs. Switch the option in the calculator to compare both.
Does starting a new 30-year loan cost more?
It can. If you have 25 years left and refinance into 30, the payment falls but you pay for 5 more years, so the lifetime cost can rise even at a lower rate. The calculator shows the lifetime change.
