Mortgage Refinance Calculator
See whether refinancing saves money. Compare monthly payments, find the break even point and the lifetime difference.
Refinancing replaces your mortgage with a new one. It makes sense when the savings outweigh the closing costs.
A lower monthly payment is not the whole story. Resetting to 30 years can cost more over time.
How it works
The current payment is based on the balance, rate and years left. The new payment uses the new rate and term.
Break even divides closing costs by the monthly saving. Lifetime saving compares total payments on both loans including costs.
The formula
Lifetime saving = old total payments - new total payments - costs.
Tips
- If you may move before the break even point, do not refinance.
- Ask about a shorter new term. Matching your remaining years avoids paying for extra years of interest.
Frequently asked questions
How much lower does the rate need to be?
There is no fixed rule, so run the numbers. A drop of 0.75% to 1% is often enough if you are staying put.
This is not financial advice. Nothing on this site is investment, tax, legal or financial advice of any kind.
The calculators give simplified estimates from the numbers you enter. They ignore taxes, fees, rate changes and real market returns, and they can be wrong.
Do not make financial decisions based on these results. Speak to a licensed financial adviser, accountant or lender before acting, and read the full disclaimer.