Mortgage Refinance Calculator
Compare your current mortgage against refinance terms. See your monthly savings, break-even point, and total interest savings to decide if refinancing is worth it.
Current Mortgage
Refinance Terms
Monthly Savings
$247
per month
Side-by-Side Comparison
Current Mortgage
Refinanced Mortgage
Refinancing Makes Sense
Break-Even Point
2y 1m
Interest Savings
$13,639
Lifetime Savings
$13,639
You'll recoup your $6,000 in closing costs after 25 months. After that, you save $247 every month.
How Mortgage Refinancing Works
Refinancing replaces your existing mortgage with a new loan, typically at a lower interest rate. You pay closing costs upfront, but the reduced monthly payment saves money over time. The key question is whether you will stay in the home long enough for those savings to exceed the upfront costs.
There are several reasons homeowners refinance: to get a lower interest rate, to switch from an adjustable-rate to a fixed-rate mortgage, to shorten the loan term, or to cash out equity for home improvements or debt consolidation.
The calculator above focuses on rate-and-term refinancing — the most common type. It compares your current remaining payments against the new loan terms, accounting for closing costs, to show you the true financial impact.
Frequently Asked Questions
When does it make sense to refinance a mortgage?
Refinancing typically makes sense when you can lower your interest rate by at least 0.5-1%, you plan to stay in the home long enough to pass the break-even point, and your credit score qualifies you for better terms. The break-even point is when your monthly savings exceed the closing costs you paid.
What is the break-even point on a refinance?
The break-even point is the number of months it takes for your monthly savings to equal the closing costs of the refinance. For example, if closing costs are $6,000 and you save $200/month, your break-even is 30 months. If you plan to stay in the home past that point, refinancing saves you money.
How much does it cost to refinance a mortgage?
Refinance closing costs typically range from 2% to 5% of the loan amount. On a $280,000 loan, that is $5,600 to $14,000. Costs include appraisal fees, title insurance, origination fees, and other lender charges. Some lenders offer no-closing-cost refinances but compensate with a slightly higher rate.
Should I refinance into a shorter term or keep 30 years?
Refinancing into a shorter term (like 15 years) means higher monthly payments but dramatically less total interest. Keeping a 30-year term maximizes monthly cash flow but costs more over the life of the loan. The right choice depends on your budget and financial goals.