Affordability & Rates
Mortgage Refinance Calculator
Refinance analysis
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Get my personalized quoteAbout the mortgage refinance calculator
A mortgage refinance calculator compares your existing loan against a new one to show whether replacing it makes financial sense. Enter your current balance, rate and payment alongside the new rate and closing costs, and it calculates your monthly savings, lifetime interest difference, and the all-important break-even point.
Refinancing is most attractive when rates drop, your credit improves, or you want to switch loan types — for example, from an adjustable to a fixed rate, or to drop FHA mortgage insurance. The calculator helps you weigh the upfront closing costs against ongoing savings so you can decide if the move is worthwhile.
The break-even point is the key number: it's how many months of savings it takes to recoup your closing costs. If you'll stay in the home well past break-even, refinancing usually pays. A practical tip — beware of resetting a nearly paid-off loan back to 30 years, which can increase total interest even at a lower rate.
Frequently asked questions
- When does refinancing make sense?
- Refinancing often makes sense when you can lower your rate meaningfully, plan to stay past the break-even point, want to switch from an adjustable to a fixed rate, or need to drop mortgage insurance. The calculator quantifies the savings.
- What is a refinance break-even point?
- It's the number of months of monthly savings required to recover your refinance closing costs. If closing costs are $4,000 and you save $200 a month, you break even in 20 months; staying longer means net savings.
- Does refinancing reset my loan term?
- It can. A new 30-year refinance restarts the clock, which lowers payments but may raise total interest if you were far along on the old loan. Consider a shorter term to keep your payoff timeline on track.
- What are typical refinance closing costs?
- Refinance costs generally run about 2% to 5% of the loan amount, covering appraisal, origination, title and recording fees. Some lenders offer no-closing-cost options that fold the cost into the rate or balance.
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