Refinancing your mortgage can lower your interest rate, reduce your monthly payment, or change your loan term — but it also comes with costs. Our refinance calculator helps you compare your current loan with a new loan and determine if refinancing makes financial sense.
It estimates your monthly savings, break-even point, and long-term interest impact so you can evaluate whether refinancing is worth it based on your situation.
🟢 How This Refinance Calculator Works
This calculator compares your existing mortgage with a potential new loan based on:
- current loan balance, rate, and remaining term
- new interest rate and loan term
- closing costs and any cash-out amount
- optional extra payments
It calculates:
- your current monthly payment
- your new monthly payment
- estimated monthly savings
- break-even point (when savings exceed costs)
- total interest paid under each scenario
This helps you see both the short-term and long-term impact of refinancing.
🟢 When to Use This Calculator
This refinance calculator is useful if you are:
- considering refinancing to a lower interest rate
- trying to reduce your monthly payment
- deciding between different loan terms (30-year vs 15-year)
- evaluating a cash-out refinance
- unsure if closing costs are worth the savings
It gives you a quick estimate to help guide your decision before speaking with a lender.
🟢 What to Consider Before Refinancing
Refinancing can reduce your monthly payment or total interest, but it also involves upfront costs and trade-offs.
Key considerations include:
- Closing costs — typically 2–5% of the loan amount
- Break-even point — how long it takes to recover costs
- Loan term reset — extending your loan can increase total interest
- Cash-out impact — increases your loan balance
If you plan to move before reaching the break-even point, refinancing may not make sense.
🟢 Key Factors That Affect Your Results
Several factors can significantly impact whether refinancing is beneficial:
- Interest rate difference — larger drops create more savings
- Remaining loan term — affects total interest paid
- Closing costs — reduce net benefit
- Time horizon — how long you plan to keep the loan
- Extra payments — can accelerate payoff
Even small changes in these inputs can change the outcome, so it is helpful to test multiple scenarios.
Mortgage Refinance Calculator
Compare your current mortgage with a refinance and estimate monthly savings and break-even timing.
Current Loan
New Loan
This calculator provides estimates based on general assumptions and may not reflect your exact loan terms. Actual refinance offers will vary based on credit profile, lender, and market conditions.
Additional research and resources
One of the most authoritative sources for mortgage rates data is from Freddie Mac. You can check the latest 30-year and 15-year mortgage rates and also compare and download mortgage rates going all the way back to 1971!
https://www.freddiemac.com/pmms
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