Mortgage Refinance Calculator
Calculate if refinancing your mortgage makes sense. See monthly savings, break-even point, and lifetime savings. Compare different rates and terms to find the best option.
Current Mortgage
New Mortgage
Costs
Monthly Savings
Break-even: 27 months
⚠️ Consider Carefully
- Significant monthly savings
- Rate drop > 0.75%
Loan Comparison
| Current Loan | New Loan | Difference | |
|---|---|---|---|
| Monthly Payment | $2,162 | $1,934 | $228 |
| Total Interest | $400,553 | $390,286 | $10,267 |
| Total Payments | $700,553 | $696,286 | $4,267 |
| Loan Term | 27 years | 30 years | 3 years |
Rate Comparison
| Rate | Payment | Monthly Savings | Break-Even |
|---|---|---|---|
| 5.5% | $1,737 | $425 | 15 mo |
| 6% | $1,835 | $328 | 19 mo |
| 6.5% | $1,934 | $228 | 27 mo |
| 7% | $2,036 | $126 | 48 mo |
| 7.5% | $2,140 | $23 | 266 mo |
| 8% | $2,245 | -$83 | N/A |
Term Comparison (at 6.5%)
| Term | Payment | Total Interest |
|---|---|---|
| 15 years | $2,666 | $173,806 |
| 20 years | $2,281 | $241,549 |
| 25 years | $2,066 | $313,840 |
| 30 years | $1,934 | $390,286 |
Refinancing Tips
When to Refinance
Generally worth it if you can lower your rate by 0.5-1%+ and plan to stay in the home past the break-even point. Also consider refinancing to remove PMI or switch from ARM to fixed.
Watch the Term
Refinancing to a new 30-year loan resets your payoff timeline. If you have 20 years left, consider a 15 or 20-year refi to avoid paying more total interest despite the lower rate.
Closing Costs
Expect 2-5% of loan amount in closing costs. Some lenders offer "no-cost" refis with higher rates. Calculate break-even to determine which option is better for your timeline.
Frequently Asked Questions
When should I refinance?
Consider refinancing when:
- You can lower your rate by 0.5-1%+
- You'll stay past the break-even point
- You want to switch from ARM to fixed
- You need to remove PMI
- You want to shorten your loan term
What is the break-even point?
Break-even = Closing Costs ÷ Monthly Savings
Example: $6,000 costs ÷ $200/month savings = 30 months to break even. If you'll stay in the home longer than 30 months, refinancing makes sense.
Refinancing Costs
| Cost | Typical Range |
|---|---|
| Appraisal | $300-600 |
| Title insurance | $500-1,500 |
| Origination fee | 0.5-1% of loan |
| Credit report | $25-50 |
| Recording fees | $50-250 |
| Total | 2-5% of loan |
Term Considerations
- Same term: Lower payment, similar payoff date
- Shorter term: Higher payment, huge interest savings
- Longer term: Lower payment, more total interest
Warning: Refinancing to a new 30-year loan resets your payoff timeline!