Refinance Calculator

It's how long it takes your monthly savings to pay back what the refinance cost you. If closing costs are $6,000 and the new loan saves $250 a month, the simple break-even is 24 months — after that, you're ahead. This calculator also shows a fuller "total cost" break-even that accounts for any cash-out received and interest on costs rolled into the loan.

Refinance closing costs commonly run about 2%–5% of the loan amount, covering the lender's origination fee, appraisal, title search and insurance, and recording fees — similar categories to a purchase closing, minus a few purchase-only fees. Ask your lender for a Loan Estimate that itemizes these costs for your specific refinance.

Rolling costs into the loan avoids cash at closing but means you pay interest on those costs for the life of the loan, and it raises your new balance. Paying cash keeps the loan amount lower and usually reaches true break-even sooner, if you have the cash available. Compare both using the toggle here — the total-cost figures already include the extra interest from rolling costs in.

A common rule of thumb is to refinance when the new rate is meaningfully lower — often cited as at least 0.5–1 percentage point — and you plan to stay in the home past the break-even point. The right answer depends on your specific costs, savings, and how long you'll keep the loan, which is what this calculator is for.

A cash-out refinance replaces your mortgage with a larger loan and gives you the difference in cash, using your home equity as collateral. It usually raises your balance and monthly payment (or extends how long you're paying), so it's worth comparing the new total cost against just keeping your current loan and financing the same need another way.

Each point (1% of the loan amount) typically buys a rate reduction of roughly an eighth to a quarter of a percentage point, though pricing varies by lender and market. Points pay off only if you keep the loan long enough for the lower rate's monthly savings to exceed what you paid for the points — compare a with-points and without-points scenario here to see which wins for how long you plan to keep the loan.

Yes. A new loan starts its own amortization schedule from its own balance, so early payments are again mostly interest. Extending your remaining term back out to 30 years can lower your payment noticeably, but it also means paying interest for longer, which shows up in the lifetime interest comparison here.

Yes — choose "Original loan terms" and enter your loan's starting amount, rate, term, and closing date. The calculator derives today's balance and remaining term the same way your servicer's amortization schedule would. If you have a recent mortgage statement, entering the balance and remaining term directly is a bit more precise.

A shorter term usually raises the monthly payment but cuts total interest substantially, since the balance is outstanding for less time — sometimes worth it even at a similar or slightly lower rate. Try a 15-year term here alongside your current term to compare the payment increase against the interest saved.

That happens when there's no cash due at closing — because closing costs (and any points) are rolled into the new loan instead of paid up front. There's nothing you paid out of pocket today to "break even" on, but that doesn't mean the refinance is free: the total-cost break-even below it accounts for the extra interest on that larger loan balance, and can show "Never" if the new loan's payments plus remaining balance never actually catch up to keeping your current loan (common with rolled-in costs or a cash-out).