Refinance Calculator
Compare your current mortgage to a new one side by side. See your monthly savings, lifetime interest change and the exact month a refinance pays for itself.
Your current loan
New loan
$2,447.25 → $2,016.54
Closing costs rolled in
Less interest paid overall
Verdict: refinancing pays for itself in roughly 0y 0m. If you plan to stay past that point, this is likely a good move.
How a refinance really works
Refinancing replaces your existing mortgage with a new one — typically at a lower rate, a different term, or both. The new loan pays off the old balance plus any closing costs, and you start a fresh amortization schedule. The decision isn't just about the rate on the new note; it's about whether the savings outpace the cost of getting that rate.
The two numbers that matter most
Monthly savings tell you what changes in your budget right away. Break-even point tells you when those savings have covered the cost of the refinance. Together they answer the only question that matters: will you still own this loan long enough to come out ahead?
Shorter term vs. lower payment
Refinancing into a shorter term — say, from a 30-year into a 15-year — usually means a higher monthly payment but dramatically less total interest. Refinancing into a longer term lowers the payment but can quietly increase what you pay over the life of the loan. Both have a place; the calculator above lets you see the trade-off in real numbers before you commit.
Frequently asked questions
When does refinancing actually make sense?+
Refinancing usually pays off when the new monthly savings recoup your closing costs well before you plan to sell or pay off the loan. A useful rule of thumb: if your break-even point lands inside the time you intend to stay in the home, it's worth a serious look.
What is the break-even point on a refinance?+
Break-even is the number of months it takes for your monthly savings to equal the closing costs of the new loan. After that point, every additional month is pure savings.
Does refinancing reset my loan term?+
Yes — a new loan starts a new amortization schedule. If you refinance a 30-year mortgage you've already paid for 5 years into another 30-year, you'll spend 35 years in mortgage payments unless you choose a shorter term or make extra principal payments.
Will I lose money on total interest even with a lower rate?+
It's possible. A lower rate spread over a longer remaining term can still mean more total interest paid. That's why this calculator shows both monthly savings and lifetime interest comparison — the right answer depends on which one matters more to you.
Are closing costs always paid up front?+
Not always. You can sometimes roll closing costs into the new loan balance or accept a slightly higher rate in exchange for lender credits. Both options change the break-even math, so model the deal the way it will actually be structured.