Refinance Calculator

How to Use This Calculator

1. Enter your Current Loan Balance and Current Interest Rate.
2. Enter the Remaining Term on your current mortgage.
3. Enter the New Rate and New Term you are considering.
4. Enter estimated Closing Costs — get quotes from 2–3 lenders.
5. See your Monthly Savings and Break-Even Point instantly.

Formula

Example

Frequently Asked Questions

• When does it make sense to refinance? ▼
  Refinancing generally makes sense when the new rate is at least 0.5–1% lower than your current rate, you plan to stay in the home long enough to recoup closing costs (break-even period), and you are not too far into your loan term (since early payments are mostly interest).
• What is the break-even point? ▼
  The break-even point is how many months it takes for your cumulative monthly savings to equal the upfront closing costs. If you plan to stay in the home beyond the break-even point, refinancing is financially beneficial.
• How much do refinance closing costs typically cost? ▼
  Refinance closing costs typically run 2–5% of the loan amount. On a $280,000 loan, expect $5,600–$14,000. Common costs include origination fees, appraisal, title search, and recording fees. Some lenders offer "no-closing-cost" refis that roll costs into the rate.
• What are discount points? ▼
  Discount points are upfront fees (1 point = 1% of loan amount) paid to lower the interest rate. Each point typically lowers the rate by 0.25%. They make sense if you stay in the home long enough to recoup the upfront cost through lower monthly payments.
• What is a cash-out refinance? ▼
  A cash-out refinance replaces your current mortgage with a larger loan, letting you take the difference as cash. It is useful for home improvements, debt consolidation, or large expenses, but increases your loan balance and monthly payment.

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