Refinance Calculator
See how much you could save by refinancing your mortgage. Compare your current payment to a new rate and find your break-even point.
Break-Even Analysis
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Based on your numbers, compare personalized refinance offers from top lenders — no impact to your credit score.
How the Refinance Calculator Works
This calculator compares your current mortgage payment to a new payment at a lower rate, then figures out how long it takes for the monthly savings to cover your refinancing costs. The break-even point tells you when refinancing starts saving you money. If you plan to stay in the home past the break-even point, refinancing makes financial sense.
When Refinancing Makes Sense
The old rule of thumb said refinance when rates drop 1% or more, but that oversimplifies things. A better approach: calculate your break-even point. If it is under 3 years and you plan to stay longer than that, refinancing is likely worth it. Even a 0.5% rate drop can save tens of thousands over the life of a loan on a large balance. Check current rates to see where you stand.
Refinancing Costs to Expect
Refinancing typically costs 2-5% of the loan amount in closing costs, including appraisal fees, title insurance, origination fees, and recording charges. Some lenders offer no-closing-cost refinances by rolling fees into the loan balance or charging a slightly higher rate. This calculator lets you input your expected closing costs and any discount points to see the true cost of refinancing. Read our refinance guide for a complete walkthrough of the process.
Shorter Term vs Lower Rate
Refinancing into a shorter term — say, from a 30-year to a 15-year mortgage — increases your monthly payment but dramatically reduces total interest paid. A $320,000 loan at 6.25% costs $283,000 in interest over 30 years but only $121,000 over 15 years. If your budget can handle the higher payment, the 15-year option builds equity faster and saves you six figures.
Cash-Out Refinance Considerations
A cash-out refinance replaces your current mortgage with a larger one, giving you the difference in cash. This can be useful for home improvements, debt consolidation, or major expenses. However, you are increasing your loan balance and resetting the clock on your mortgage. Only use cash-out if the funds go toward something that builds value, like a renovation with strong ROI. Our renovation ROI guide can help you decide which improvements are worth financing.