Mortgage Refinance Calculator

Most commonly when the new rate is meaningfully lower than the current rate, and you plan to stay in the home long enough to recoup the closing costs. A common rule of thumb: refinance saves money if you'll keep the loan beyond the break-even point. Cash-out refis and term changes have their own logic.

Closing costs divided by monthly savings. If a refi costs $4,500 and saves $150/month, the break-even is 30 months. If you'll keep the loan longer than that, the refi saves money on net. Less than that, it costs you.

Yes, indirectly. The new monthly payment is lower if you stretch to a longer term, but lifetime interest can rise. The calculator shows total interest under both loans so you can see the trade-off. Many homeowners refi from 30-year to 15-year to cut total interest.

Lender fees vary widely (origination, points, appraisal, title). Property tax and insurance escrow adjustments depend on local rules and timing. Rolling closing costs into the loan increases the new balance and changes payment math. This calculator assumes you pay closing costs out of pocket and refinance only the current balance.

Probably not. If you'll be in the home less than the break-even period, the refi costs more than it saves. Compare break-even months against your time-in-home estimate before committing.

Cash-out refis withdraw equity by increasing the loan balance. This calculator does not model cash-out: it only compares an equivalent-balance refinance to your current loan. For a cash-out, add the withdrawal amount to your new balance and recalculate.