Mortgage Refinance Calculator
See if refinancing makes sense by comparing costs and calculating your break-even point.
Current Mortgage
New Loan
Typically 2-5% of loan amount
When to Refinance
Rate drop of 0.5-1%: Generally, refinancing makes sense if you can reduce your rate by at least 0.5-1% and plan to stay in the home long enough to recoup closing costs.
Consider the term: Refinancing to a shorter term (30 to 15 years) increases monthly payments but saves significant interest. Extending the term lowers payments but costs more over time.
Break-even is key: Divide closing costs by monthly savings to find your break-even point. Only refinance if you'll be in the home past that date.
Cash-out refinancing: You can also refinance to access home equity, but this increases your debt and should be used carefully.
This calculator provides estimates for educational purposes only.