Refinance Calculator

Calculate your monthly savings and break-even point from refinancing.

Current loan details Break-even analysis
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Avg: 2–5% of loan balance
Frequently asked questions
When does refinancing make sense? ›
Refinancing typically makes sense when you can lower your interest rate by at least 0.5–1%, you plan to stay in the home long enough to recoup closing costs (past the break-even point), or you want to switch from a 30-year to a 15-year loan to pay off your home faster. Always calculate the break-even point before deciding.
What are typical closing costs for a refinance? ›
Refinance closing costs typically run 2–5% of the loan balance. On a $300,000 mortgage, that is $6,000–$15,000. Common fees include origination fees, appraisal, title insurance, and prepaid interest. Some lenders offer "no-closing-cost" refinances, but the costs are typically rolled into a higher interest rate.
What is a cash-out refinance? ›
A cash-out refinance replaces your existing mortgage with a larger loan and gives you the difference in cash. For example, if your home is worth $400,000 and you owe $200,000, you might refinance for $280,000 and receive $80,000 cash. This can be used for home improvements, debt consolidation, or other major expenses. Note that you are borrowing against your home equity.
How does refinancing affect my credit score? ›
Refinancing causes a hard inquiry on your credit report, which may temporarily lower your score by 5–10 points. However, the impact is usually minor and short-lived (about 12 months). If you shop multiple lenders within a 30-day window, credit bureaus typically count all the inquiries as one, minimizing the impact.

About this refinance calculator

Our refinance calculator compares your current mortgage to a new loan, calculates your monthly savings, and tells you exactly when you will break even on your closing costs. This helps you determine whether refinancing is financially worthwhile given your specific situation.

The break-even point

The break-even point is the number of months it takes for your monthly savings to offset the closing costs. If you plan to sell or refinance again before the break-even, refinancing is likely not worth it. If you will stay in the home well beyond the break-even, refinancing can save tens of thousands of dollars.