Mortgage Refinance Calculator
Compare your current mortgage with a refinance side by side. See your new monthly payment, how many months until the closing costs pay for themselves, and what refinancing does to your total interest over the life of the loan.
Your Loans
Current Mortgage
Your current payoff amount, from your latest statement
New Loan
Typically 2-5% of the loan amount
Refinance Results
Total Cost From Today Forward
Note: the new loan runs 3 years longer than your current one, which is part of why the payment drops. The comparison above accounts for the extra payments.
The Power Move
Refinance, but keep paying your current $2,253 payment. The new loan is gone in 19 yr 11 mo, and you save another $134,481 in interest compared to making the minimum new payment.
Before You Refinance
- • Get quotes from at least three lenders - rates and fees vary more than people expect
- • Compare your break-even month to how long you'll realistically stay in the home
- • A refinance restarts your amortization clock; the same-payment strategy above counters that
- • Watch the APR, not just the rate - it includes most of the fees
- • Check our live mortgage rates to see what's realistic today
How to Read These Numbers
The Break-Even Point Is the Whole Game
Refinancing costs real money upfront - typically 2-5% of the loan in closing costs. Every month after closing, your lower payment claws some of that back. The break-even month is when you're made whole; every month after that is pure savings.
That's why the same refinance can be great for one person and a mistake for another. Break even in 18 months and stay ten years? Excellent deal. Break even in 40 months and move in three years? You paid thousands in fees for the privilege of a smaller payment you didn't keep long enough to enjoy.
The Term-Reset Trap
A refinance usually replaces your remaining term with a fresh 30 years. Part of your "lower payment" isn't the better rate at all - it's stretching the debt over more years, which quietly adds interest. This calculator's lifetime comparison accounts for those extra payments, so a refinance that looks great monthly but costs more overall will show it.
Two clean ways around the trap: refinance into a shorter term (15 or 20 years), or take the new 30-year loan but keep paying your old payment amount - the "power move" shown in your results. You get the lower rate and pay the loan off faster than your original schedule.
When Refinancing Makes Sense
Good Reasons to Refinance
- • Rates have dropped meaningfully below your current rate - the old "1% rule" is a reasonable screen, but run your break-even instead
- • Your credit has improved substantially since you got the loan
- • You want out of an adjustable-rate mortgage before it resets
- • You can afford a 15-year payment and want to slash total interest
- • You're removing PMI because your equity has crossed 20%
Weak Reasons
- • Chasing a slightly lower payment when you may move before break-even
- • Resetting to 30 years repeatedly - serial refinancers can pay interest for decades without denting principal
- • Cash-out refinancing to pay off credit cards you'll run up again
What Refinancing Costs
Expect appraisal fees, origination fees, title insurance, and recording costs - usually 2-5% of the loan amount all-in. "No-closing-cost" refinances exist, but the costs don't vanish: they're rolled into the balance or traded for a higher rate. That can still be the right call if you're not sure how long you'll stay, since it eliminates the break-even risk.
The Process, Briefly
It looks a lot like getting your original mortgage: application, credit check, appraisal, underwriting, closing - typically 30-45 days. Lock your rate when you apply, keep your credit quiet until closing, and get Loan Estimates from multiple lenders on the same day so the comparison is apples to apples. Our guide on shopping for the best mortgage rates walks through it.
Keep Exploring
More tools for your mortgage decision:
- • Read the full guide: Complete Guide to Mortgage Refinancing: When and How to Refinance Your Home
- • See today's rates on our Mortgage & Real Estate page
- • Paying extra instead of refinancing? Compare with the Mortgage Payoff Calculator
- • Considering points on the new loan? Read Understanding Mortgage Points: Should You Buy Them Down?
Frequently Asked Questions
When is refinancing worth it?
When your break-even point arrives well before you expect to move or pay off the loan. The old rule of thumb says refinance when rates drop 1% below yours, but the honest answer is your own math: divide the closing costs by the monthly savings and compare that to your realistic timeline in the home.
How much does it cost to refinance a mortgage?
Typically 2-5% of the loan amount - appraisal, origination fees, title insurance, and recording costs. On a $320,000 loan that's roughly $6,000-$16,000. Fees vary significantly by lender, which is why collecting multiple Loan Estimates routinely saves thousands.
What is a refinance break-even point?
The month when your accumulated monthly savings equal what you paid in closing costs. Pay $6,000 to close and save $250 a month, and you break even at month 24. Stay past that point and the refinance profits; sell or refinance again before it and you lost money on the deal.
Does refinancing hurt your credit score?
Slightly and briefly. The lender's hard inquiry can trim a few points, and the new account lowers your average account age. Rate-shopping inquiries within a roughly 14-45 day window count as one. Scores typically recover within a few months of on-time payments.
Should I refinance into a 15-year mortgage?
If you can comfortably afford the higher payment, it's the fastest way to cut total interest - 15-year rates run lower than 30-year rates, and you halve the time interest accrues. A flexible middle path: take the 30-year refinance and voluntarily pay the 15-year amount. You keep the option of dropping back to the minimum in a tight month.
What is a no-closing-cost refinance?
One where the lender covers the fees in exchange for a higher rate, or rolls them into the loan balance. You'll pay more over time than bringing cash to closing, but you eliminate break-even risk - useful when you're not sure how long you'll keep the home or the loan.
How often can you refinance?
As often as lenders will approve you - though some loans have six-month seasoning requirements, and some carry prepayment penalties worth checking. The practical limit is cost: each refinance incurs closing costs and resets your amortization, so serial refinancing without a clear break-even case erodes equity.
Should I roll closing costs into the loan?
It's a fair trade when you'd rather preserve cash: nothing due at closing, in exchange for financing the fees at your mortgage rate for the life of the loan. Toggle the option in this calculator to see the exact payment difference - on most loans it's a modest amount per month.