Refinance Calculator

Compare your current loan with refinancing options and find out if refinancing is worth it for you.

How the Refinance Calculator Works

This calculator compares your current loan with a potential refinanced loan by analyzing:

Monthly Payment Change: The difference between your current and new monthly payments.
Break-Even Point: How many months until your savings cover the closing costs.
Total Interest: The total interest you'll pay over each loan's remaining life.
Net Savings: Total interest savings minus closing costs.

A refinance is generally worth it if the net savings are positive and you'll stay in the home past the break-even point.

Refinancing a $250,000 balance from 7% to 5.5% with $6,000 closing costs:

When does refinancing make sense?: Refinancing typically makes sense when you can lower your interest rate by at least 0.5-1%, you plan to stay in the home longer than the break-even period, or you want to change your loan term. Consider both the monthly savings and the total interest savings over the life of the loan.
What is the break-even point?: The break-even point is how long it takes for your monthly savings to cover the closing costs of refinancing. For example, if closing costs are $6,000 and you save $200/month, your break-even point is 30 months. If you plan to move before reaching break-even, refinancing may not be worth it.
Should I refinance to a longer term?: Refinancing to a longer term lowers your monthly payment but often increases total interest paid. It can make sense if you need lower payments for cash flow, but consider that you'll pay more over time. Our calculator shows both scenarios so you can make an informed decision.