arrows_clockwise Refinance Calculator

Evaluate if refinancing your mortgage makes financial sense. Calculate your break-even point, monthly savings, and total savings over the life of the new loan.

Enter values and click Calculate.

Current Payment
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New Payment
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Monthly Savings
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Break-Even (Months)
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Total Savings
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Frequently Asked Questions - Refinance Calculator

When does refinancing make financial sense?

Refinancing typically makes sense when you can reduce your interest rate by at least 1%, plan to stay in the home beyond the break-even point, and the total savings exceed the closing costs. Also consider if you want to switch from an ARM to a fixed-rate loan.

What are typical closing costs for a refinance?

Refinance closing costs typically range from 2-5% of the loan amount ($2,000-$6,000 on average). They include application fees, origination fees, appraisal, title search, and attorney fees. Some lenders offer no-closing-cost refinances at slightly higher rates.

What is a cash-out refinance?

A cash-out refinance replaces your current mortgage with a larger one, letting you take the difference in cash. It can be used for home improvements, debt consolidation, or other major expenses. You generally need at least 20% equity remaining after the cash-out.

Does refinancing restart my loan term?

Yes, refinancing into a new 30-year loan resets the clock. If you have paid 10 years on a 30-year mortgage, refinancing to another 30-year term means 40 total years of payments. Consider a shorter term if you want to pay off the home on schedule.

How does my credit score affect refinance rates?

Credit scores significantly impact the rate you qualify for. A score of 760+ usually gets the best rates, while below 620 may make refinancing difficult. Even a 20-point difference can change your rate by 0.125-0.25%. Check and improve your score before applying.