Mortgage Refinance Calculator | Savings and Break-Even
Compare current mortgage balance, rate, remaining term, new loan terms, and closing costs to estimate savings and break-even time.
Compare Current and New Mortgage Terms
Enter current balance, current rate, remaining months, new rate, new term, and closing costs to estimate payment change, monthly savings, and break-even month.
Closing Costs Change the Decision
A lower rate is not automatically better if fees are high or you plan to move soon. Compare break-even time with how long you expect to keep the loan.
When to Use Refinance Math
Use it before requesting quotes, comparing lenders, shortening a loan term, lowering payments, or deciding whether refinance savings justify the upfront cost.
About This Tool
Mortgage Refinance Calculator compares your current mortgage against a new refinanced loan to show whether refinancing saves money over the remaining term, including the break-even point after closing costs.
When to Use It
Use this when interest rates have dropped and you are considering refinancing, when evaluating whether the savings outweigh the closing costs, or when comparing cash-out refinancing options.
How to Use
- Enter your current loan balance, rate, and remaining term.
- Enter the new loan rate, term, and estimated closing costs.
- Click Calculate to see the monthly saving and break-even point.
- Review the total interest saved over the remaining term.
Frequently Asked Questions
When does refinancing make financial sense?
Refinancing generally makes sense when the new rate is at least 0.5 to 1 percent lower than the current rate and you plan to stay in the home past the break-even point.
What is the break-even point?
The break-even point is the number of months it takes for the cumulative monthly savings to cover the closing costs of refinancing.
What closing costs should I expect?
Typical refinancing closing costs are 2 to 5 percent of the loan amount. These include appraisal, origination fees, title insurance, and government recording fees.