Free Mortgage Refinance Calculator
Is refinancing worth it? Compare your current mortgage with a new rate and term to see the monthly savings, how long it takes to recover closing costs, and whether you come out ahead over the life of the loan.
Current loan
New loan
Monthly savings
How to use the refinance calculator
- Enter your current balance, rate and the years left on your existing mortgage.
- Enter the rate and term from the refinance quote, plus the total closing costs from the Loan Estimate.
- Choose whether you will pay closing costs in cash or roll them into the new loan.
- Check the break-even point against how long you expect to stay in the home, and look at the lifetime cost line, not just the monthly savings.
When refinancing makes sense
The break-even point is the heart of the decision: closing costs divided by monthly savings tells you how many months it takes for the lower payment to pay back what you spent to get it. If you will sell or refinance again before then, you lose money. A common rule of thumb is that a refinance is worth a look when it cuts your rate by around three-quarters of a point or more, but the break-even math with your real numbers is what matters.
Watch the term reset. If you are 5 years into a 30-year loan and refinance into a new 30-year loan, your payment drops partly because you are stretching the debt back out to 30 years. That can mean more total interest even at a lower rate, which is why this calculator shows the lifetime cost difference separately from the monthly savings. Refinancing into a shorter term (or into a 30-year loan while continuing to pay your old payment amount) avoids that trap.
Closing costs typically run 2–5% of the loan amount: appraisal, title insurance, origination and recording fees, and sometimes discount points. "No-closing-cost" refinances usually build those costs into a slightly higher rate, so compare the APR on each Loan Estimate.
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Frequently asked questions
What is a good break-even period?
Shorter is better. If you plan to stay in the home well past the break-even month, the refinance pays for itself. Many people look for break-even within 2–3 years.
Why does my lifetime cost go up even with a lower rate?
Because the new loan restarts the clock. Paying a lower rate for more years can cost more in total interest. Try a shorter new term to compare.
Are taxes and insurance included?
No. Escrow payments are the same either way, so only principal and interest are compared.
Should I pay points to lower the rate?
Points are prepaid interest. Add them to closing costs here and check whether the extra savings break even before you expect to move.