Mortgage Refinance Calculator

Will refinancing actually save you money?

A lower rate is not automatically a win. Refinancing replaces your current mortgage with a brand-new loan, and lenders charge closing costs — often 2% to 5% of the balance — to do it. This calculator compares your current principal-and-interest payment with the payment on the new loan, then shows how many months of savings it takes to earn those fees back.

The break-even point is the number that matters

Break-even months = closing costs divided by monthly savings. If refinancing saves you $180 a month and costs $5,400 to close, you break even in 30 months. Stay in the home longer than that and the refinance pays for itself; sell or refinance again sooner and you lose money on the deal. Watch the lifetime-difference card too: stretching 27 remaining years back out to a fresh 30-year term can lower your payment yet increase the total interest you pay over the life of the loan.

How to use it

1. Enter your current balance, rate, and the years left on the loan. If you know your exact principal-and-interest payment, type it in; otherwise it is estimated for you.
2. Enter the new rate, the new term, and the closing costs from your Loan Estimate.
3. Optionally add how long you plan to stay in the home.
4. Read the cards — new payment, monthly savings, break-even months, and lifetime cost difference update instantly as you type.

Everything runs in your browser: nothing you type is uploaded or stored. These are estimates only, not financial, tax, insurance, or legal advice — confirm real numbers with your lender.

FAQ

What counts as closing costs?

Origination and application fees, appraisal, title work, recording fees, and any discount points. Use the total from the lender's Loan Estimate for the most accurate break-even.

Does the payment include taxes and insurance?

No. The calculator compares principal and interest only, since escrow amounts stay roughly the same whether or not you refinance.

Is a "no-closing-cost" refinance really free?

Rarely. The costs are usually rolled into the balance or traded for a higher rate. Model it here by adding the fee to closing costs or nudging the new rate up.

When is refinancing usually worth it?

A common rule of thumb is a rate drop of at least 0.75 to 1 point with a break-even point well before you expect to move — but run your own numbers rather than trusting the rule.