Mortgage Refinance Calculator
Compare your current mortgage with a refinance offer: new monthly payment, closing costs, break-even point, and lifetime interest.
How to tell if a mortgage refinance is worth it
Two numbers matter most. The break-even point — closing costs divided by your monthly savings — tells you how long you need to keep the new loan before the refinance has paid for itself. If you might sell or refinance again before then, it probably isn't worth it. Net lifetime savings compares every remaining payment on your current loan with every payment on the new loan plus closing costs.
The term reset trap
Refinancing a loan with 27 years left into a new 30-year loan lowers the payment partly by adding three more years of payments. That can mean paying more total interest even at a lower rate. Choosing a term close to your remaining years — or a 15- or 20-year loan — keeps the savings real.
Rate-and-term vs. cash-out
This calculator models a rate-and-term refinance of your existing balance. If you plan to take cash out, add that amount to the balance — and compare against a HELOC, which lets you borrow against equity without replacing your first mortgage's rate.
Payments shown are principal and interest only; your escrow for property taxes and insurance generally stays the same after refinancing.
Frequently asked questions
How much does it cost to refinance a mortgage?
Closing costs commonly run a few percent of the loan amount and include lender fees, appraisal, title insurance, and recording fees. Ask lenders for a Loan Estimate so you can compare offers line by line.
How much lower does my rate need to be?
There's no fixed rule — a smaller drop can still pay off on a large balance with low closing costs, while a bigger drop may be needed on a small balance. Use the break-even result above for your situation.
Should I roll closing costs into the loan?
Rolling them in avoids paying cash now, but you'll pay interest on those costs for the life of the loan. Compare the lifetime savings both ways.
Does refinancing restart my amortization?
Yes. A new loan starts a new amortization schedule, so early payments are again mostly interest. That's why the term you choose matters so much.