Refinancing replaces your current loan with a new one — usually to get a lower rate. Enter your current loan details, the new rate you've been offered, and any closing costs to see your monthly savings and how long it takes to break even.
Refinance Calculator
LiveCurrent loan
New loan
How the break-even point is calculated
A $250,000 balance at 7.5% refinanced to 6.0%, same 25-year term: old payment ≈ $1,847.48, new payment ≈ $1,610.75, saving $236.72/month. With $4,000 in closing costs, that's a break-even point of about 17 months.
Step-by-step guide
- Enter your current loan's remaining balance, rate, and remaining term.
- Enter the new rate and term you've been quoted, plus any closing costs.
- Check your monthly savings and break-even point. If you plan to stay in the home longer than the break-even period, refinancing likely makes sense.
Common mistakes
Frequently asked questions
When does refinancing make sense?
Generally, when your break-even point is well within how long you plan to keep the loan. If you might move or pay off the loan before the break-even point, refinancing may not be worth the upfront cost.
Should I roll closing costs into the loan?
You can, but it increases your loan balance and the interest you pay on it over time. Enter the closing costs as a separate upfront figure here to see the true break-even point either way.
Does this account for a cash-out refinance?
No — this assumes you're refinancing the same balance. For a cash-out refinance, add the extra cash you're taking out to the balance field to see the new payment.
Related calculators
See the complete Financial Calculators guide for the full list, or try: