Refinance Calculator
Compare your current mortgage payment against a new rate and term, and see the break-even point where refinancing costs pay for themselves.
Monthly savings
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New monthly payment —
Break-even —
5-year savings after costs —
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How it works
New payment = B·r(1+r)ⁿ/((1+r)ⁿ−1); break-even months = closing costs ÷ monthly savingsFrequently Asked Questions
When is refinancing worth it?
The classic test is the break-even point: closing costs divided by monthly savings. If you will keep the home longer than the break-even months, refinancing pays; a common rule of thumb is refinancing makes sense when you can cut the rate by about 0.75–1 point and stay past break-even.
What closing costs should I expect?
Refinancing typically costs 2–5% of the loan amount, covering appraisal, title, origination and recording fees. Some lenders offer 'no-cost' refinances that fold the fees into a slightly higher rate.
Does restarting a 30-year clock cost me?
It can — a lower payment over a longer term may mean more lifetime interest even at a lower rate. Compare total interest, or refinance into a term matching your remaining years.