Entry — Refinance
Compare your current mortgage with a potential refinance — see the new monthly payment, how much you would save or pay extra each month, the closing costs, the break-even point, and whether you would actually pay less interest over the life of the loan.
Mortgage Refinance Calculator
Enter your current mortgage details and the terms of the refinance you are considering. Results update after you click Calculate.
Additional Costs
These costs may not change simply because of refinancing — they are shown for a complete monthly total, not used to calculate your refinance savings.
This calculator provides estimates based on the information you enter. Actual refinance rates, fees, closing costs, loan terms, savings, and eligibility may vary by lender and borrower. This tool is for informational purposes only and is not a mortgage approval, loan offer, or financial advice.
Your Refinance Results
Current Mortgage vs. New Mortgage
| Item | Current Mortgage | Refinanced Mortgage |
|---|---|---|
| Loan balance | $0 | $0 |
| Interest rate | 0% | 0% |
| Remaining term | 0 yrs | 0 yrs |
| Monthly P&I | $0 | $0 |
| Total interest | $0 | $0 |
| Closing costs | — | $0 |
Enter your numbers above to see a full comparison.
Refinance Savings and Break-Even Point
Break-even point = total refinancing costs ÷ monthly payment savings. This tells you how many months of savings it takes to recover what refinancing costs you upfront.
Whether refinancing makes sense depends on your goals, how long you plan to keep the mortgage, loan terms, closing costs, taxes, and other financial factors.
Total Interest Comparison
A lower monthly payment does not always mean lower lifetime cost — extending your loan term can increase total interest even at a lower rate. Both numbers are shown here so you can weigh them directly.
What Is a Refinance Calculator?
A refinance calculator compares your existing mortgage against a potential new loan, so you can see the difference in monthly payment, closing costs, and total interest before deciding whether to move forward. Refinancing simply means replacing your current mortgage with a new one — typically to get a lower interest rate, change your loan term, remove PMI, or access home equity through a cash-out refinance.
How Does Mortgage Refinancing Work?
When you refinance, a new loan pays off your existing mortgage balance, and you begin repaying the new loan under its own rate and term. The key inputs that determine whether it is worthwhile are your current balance and rate, how much time is left on your existing loan, the new rate and term being offered, and the closing costs required to originate the new loan — all of which this calculator uses to build a side-by-side comparison.
How Much Can I Save by Refinancing?
Savings depend on more than just the interest rate difference. Your remaining loan balance, the new term you choose, and your closing costs all factor in — and how long you plan to stay in the home matters just as much, since closing costs need time to be recovered through monthly savings. A large rate drop can still result in a poor refinance if the term resets to 30 years and closing costs are high relative to how long you will keep the loan.
What Is the Break-Even Point on a Refinance?
The break-even point is the number of months it takes your monthly savings to equal your total refinancing costs. For example, if refinancing costs $6,000 and saves you $200 per month, the break-even point is 30 months — about two and a half years. If you plan to stay in the home longer than that, the refinance likely pays for itself; if you expect to move or refinance again sooner, it may not.
When Does Refinancing Make Sense?
Homeowners typically consider refinancing for a few common reasons:
- A lower interest rate — reducing the monthly payment and often total interest.
- A lower monthly payment — sometimes achieved through a lower rate, sometimes through a longer term.
- A shorter loan term — paying more per month but significantly less interest overall.
- Removing PMI — once enough equity has built up, refinancing can eliminate this cost.
- Accessing home equity — through a cash-out refinance, for renovations, debt consolidation, or other goals.
Refinancing is not automatically beneficial in every situation — the math above should reflect your specific numbers before deciding.
Cash-Out Refinance vs. Rate-and-Term Refinance
A rate-and-term refinance replaces your mortgage with a new loan of a similar balance, changing only the interest rate, the term, or both. A cash-out refinance replaces your mortgage with a larger loan, using your home’s equity to give you the difference in cash — increasing your loan balance, monthly payment, and total interest. Lenders evaluate cash-out refinances using your estimated loan-to-value (LTV) ratio, and actual limits vary by loan type, credit profile, property type, occupancy, and lender requirements.
Refinance vs. Recast
Refinancing replaces your loan entirely — new rate, new term, new closing costs, and typically a new credit check. Recasting keeps your existing loan and interest rate, but re-amortizes your payment after you make a large lump-sum payment toward principal, usually for a small fee and without requalifying. Recasting can lower your payment without the cost or complexity of a full refinance, but it does not let you change your rate or term the way refinancing does.
Refinance Calculator FAQs
Is refinancing worth it?
It depends on your monthly savings, the closing costs, how long you plan to keep the loan, and whether your total interest goes up or down over the new term. If you will stay in the home past the break-even point and the total interest does not increase, refinancing is often worth considering — but it is not automatically beneficial for everyone.
How much can I save by refinancing?
Savings depend on the difference between your current and new interest rate, your remaining balance, the new loan term, and your closing costs. A lower rate can reduce your monthly payment, but extending the loan term can offset some of that benefit by increasing total interest. Use the calculator above with your own numbers for an estimate.
How do I calculate my refinance savings?
Compare your current monthly principal and interest payment to the estimated new payment on the refinanced loan, then subtract closing costs and any change in total interest over the life of the loan. This calculator does that automatically from your current balance, rate, and remaining term against your new rate, term, and costs.
What is a refinance break-even point?
The break-even point is how long it takes your monthly savings to cover the cost of refinancing. It is calculated by dividing your total refinancing costs by your monthly payment savings. If you sell or refinance again before reaching that point, you may not recover the costs.
How long does it take to break even on a refinance?
It varies widely based on your closing costs and monthly savings, but many refinances break even somewhere between two and four years. A refinance with low costs and a large monthly savings can break even in under a year, while one with high costs and modest savings can take five years or more.
Does refinancing lower your monthly payment?
Often, yes — especially if you secure a lower interest rate or extend the loan term. However, extending the term can lower your monthly payment while increasing the total interest you pay over the life of the loan, so it is worth checking both numbers, not just the monthly figure.
Does refinancing reset your mortgage term?
Yes, in most cases. A refinance replaces your existing mortgage with a new loan, which typically starts a new amortization schedule at whatever term you choose — even if that is the same number of years as before, you are generally restarting the clock.
Does refinancing save interest?
It can, if your new rate is meaningfully lower and you do not significantly extend the loan term. But refinancing to a lower payment over a longer term can actually increase your total lifetime interest, even though the rate is lower — this calculator compares both scenarios so you can see which applies to you.
How much does it cost to refinance a mortgage?
Refinance costs vary by lender and location, and can include appraisal fees, title fees, origination fees, discount points, and other lender charges. There is no single figure that applies to every borrower — enter your own estimated costs above to see how they affect your break-even point.
Can I refinance with closing costs included?
Many lenders allow you to roll closing costs into the new loan balance instead of paying them upfront. This avoids an out-of-pocket cost, but it increases your loan amount and the total interest you will pay over the life of the loan — the calculator above lets you toggle this option to compare both approaches.
What is a cash-out refinance?
A cash-out refinance replaces your mortgage with a larger loan and gives you the difference in cash, using your home’s equity as the source of funds. It increases your loan balance and typically your monthly payment and total interest, and is different from a standard rate-and-term refinance which only changes the rate or term.
What is the difference between refinancing and recasting?
Refinancing replaces your loan entirely with a new one, often with a new rate and term, and usually involves closing costs and underwriting. Recasting keeps your existing loan and rate but re-amortizes the payment after a lump-sum payment toward principal, typically for a smaller fee and without a new credit check.
Should I refinance to a shorter mortgage term?
A shorter term usually means a higher monthly payment but significantly less total interest, since the balance is paid off faster and less time is spent accruing interest. Whether that trade-off makes sense depends on your budget and financial goals — the calculator above lets you compare terms directly.