See if refinancing your mortgage is worth it. Compare your current loan to a new rate and term, with monthly savings and break-even point.
When refinancing makes sense
Refinancing replaces your existing mortgage with a new one — ideally at a lower rate. The decision comes down to whether your monthly savings justify the closing costs, and how long you plan to keep the home. This calculator shows your new payment, monthly savings, the break-even point, and the lifetime interest impact.
Lower payment vs. less total interest
A lower rate on a fresh 30-year term reduces your monthly payment but can add interest over time. Refinancing into a shorter term (say, 15 years) raises the payment but can save tens of thousands in interest. Try both to see which fits your goals.
Estimates for educational purposes only — not financial advice. Actual rates, closing costs, and terms vary by lender and your credit profile.
Frequently asked questions
How do I know if refinancing is worth it?
Compare your monthly savings to the closing costs. The break-even point — closing costs divided by monthly savings — tells you how many months until you come out ahead. If you'll stay in the home well past the break-even point, refinancing usually makes sense.
What is the break-even point on a refinance?
It's the number of months it takes for your monthly savings to recoup the upfront closing costs. For example, $6,000 in closing costs with $300/month savings breaks even in 20 months.
Does refinancing reset my loan term?
It can. Refinancing into a new 30-year loan lowers your payment but can increase total interest because you're stretching repayment out again. Refinancing into a shorter term saves the most interest. This calculator shows both effects.
Should I roll closing costs into the loan?
You can finance closing costs instead of paying upfront, but that increases your balance and the interest you pay. This calculator assumes costs are paid separately; add them to the balance if you plan to roll them in.