Refinance Calculator
Is refinancing worth it?
Free to compare. No obligation.
Estimate, not a loan offer. The new rate is an example; your rate depends on credit, equity and lender. We may earn a commission when you click. How we make money
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Your break-even depends on the rate you actually get
The new rate above is an example. Compare refinance quotes from several lenders to see your real payment and closing costs.
Free to compare. No obligation.
How to tell if refinancing is worth it
A refinance replaces your current mortgage with a new one. It's worth it when the savings outweigh the cost, and that comes down to three numbers this calculator shows: the monthly savings, the break-even month, and the total cost over the life of the loan.
Refinance break-even: monthly savings vs. closing costs
Your monthly savings is your current principal and interest payment minus the new one. The break-even month is your closing costs divided by those savings. With the example numbers, $6,000 of closing costs and about $265 a month in savings break even in 23 months. If you expect to sell or refinance again before then, the refinance probably costs more than it saves.
Watch the term reset
Refinancing 27 years left into a new 30-year loan lowers the payment partly by stretching it over three more years. That can mean paying more interest in total even at a lower rate. The comparison table shows the full cost of each loan, so you can see whether you come out ahead. Choosing a shorter new term, or paying a little extra each month, keeps the savings without adding years.
Rolling in closing costs
Many lenders let you add closing costs to the new loan instead of paying cash. You keep your cash, but you pay interest on those costs for the life of the loan. Switch the option in the form to compare.
This estimate covers principal and interest only. Taxes and insurance usually stay the same after a refinance.
Frequently asked questions
How much does it cost to refinance a mortgage?
Closing costs often run about 2% to 6% of the loan amount, covering lender fees, appraisal, title and recording. On a $300,000 loan that's roughly $6,000 to $18,000. Some lenders offer no-closing-cost refinances in exchange for a higher rate.
When should I refinance my mortgage?
When the savings repay the closing costs before you expect to move or refinance again. That's the break-even month in the calculator. Other good reasons: removing PMI or FHA mortgage insurance once you have enough equity, or moving to a shorter term you can afford.
What is a cash-out refinance?
A refinance for more than you owe, with the difference paid to you in cash. It usually carries a slightly higher rate than a standard refinance, and lenders cap how much equity you can take out. It turns home equity into debt secured by your house.
Does refinancing reset my loan term?
Yes, if you take a new 30-year loan. Refinancing 27 years left into a new 30-year loan lowers the payment partly by adding three years. The calculator shows the term change and the total cost so you can see the trade-off. Choosing a shorter term avoids it.
How soon can you refinance?
It depends on the loan. Many rate-and-term refinances have no waiting period. Cash-out refinances and streamline programs, such as the FHA Streamline and VA IRRRL, usually require a certain number of months or on-time payments first. Ask lenders about the rules for your loan type.
Does refinancing hurt your credit?
Applying causes a hard inquiry, which may lower your score slightly for a short time. Credit scoring models treat several mortgage inquiries within a short shopping window as one, so comparing lenders over a couple of weeks doesn't multiply the effect.