Refinance Calculator

About the Refinance Calculator

Refinancing your mortgage can save significant money by lowering your interest rate — but refinancing has costs, and those costs take time to recoup. Our refinance calculator computes your monthly savings, the break-even point (when savings exceed closing costs), and your total lifetime savings to help you decide whether refinancing makes financial sense for your situation.

How It Works

Monthly savings = current payment minus new payment. Break-even months = closing costs divided by monthly savings. If closing costs are $4,000 and you save $200/month, break-even is 20 months. If you plan to stay in the home more than 20 months, refinancing makes sense. Note that restarting a 30-year clock on a loan you've already paid for 5 years increases total interest paid even if the monthly payment drops.

Tips & Best Practices

• ✓The 1% rule: refinancing generally makes sense when you can lower your rate by at least 0.75–1%.
• ✓No-closing-cost refinances roll fees into the rate — higher rate but no upfront cost.
• ✓Cash-out refinancing lets you tap home equity but increases your loan balance and interest.
• ✓Refinancing to a 15-year term significantly reduces total interest even with similar rates.
• ✓If you're within 10 years of paying off, refinancing usually isn't worth restarting the amortization clock.

Who Uses This Calculator

Homeowners who purchased when rates were higher, adjustable-rate mortgage holders facing rate resets, and anyone whose credit has significantly improved since their original purchase should regularly evaluate whether refinancing makes sense.