Refinance Calculator
Will refinancing actually save you money? Compare your current loan against a new offer and find your break-even point.
Current Loan
New Loan Offer
| Current Monthly Payment | — |
| New Monthly Payment | — |
| Break-even Point | — |
| Closing Costs | — |
| Total Interest — Current Loan | — |
| Total Interest — New Loan | — |
| Lifetime Interest Savings | — |
Understanding the Break-Even Point
The break-even point is how long it takes for your monthly savings to cover the closing costs: Break-even months = Closing Costs ÷ Monthly Savings. If you plan to stay in the home longer than the break-even period, refinancing usually makes sense. If you might move sooner, the closing costs won't pay for themselves.
When Refinancing Makes Sense
- Market rates are at least 0.75%–1% below your current rate.
- Your break-even point is under ~36 months and you plan to stay longer.
- You want to switch from an ARM to a fixed rate for stability.
- You need to remove PMI after your home value has risen.
Watch Out For
Extending back to a 30-year term can lower your monthly payment while increasing total interest paid — check the lifetime interest comparison above before deciding. Also ask lenders for a Loan Estimate to compare closing costs, which can vary significantly between lenders for the same rate.
FAQ
Does refinancing restart my loan?
Yes — it's a new loan. Choosing a shorter new term (e.g. 15 years) lets you keep paying down principal fast while still cutting your rate.
Are closing costs negotiable?
Some are. Lender fees, title insurance and points can often be shopped or negotiated. Get Loan Estimates from at least 3 lenders.