Check whether refinancing your mortgage saves money: see the verdict, the break-even month and a side-by-side comparison of your current loan and the new one.
Each goal fills in typical numbers. Adjust any field to match your own loan.
Advanced options
| Measure | Current loan | New loan |
|---|---|---|
| Monthly payment | - | - |
| Interest left until payoff | - | - |
| Total cost left (payments + closing costs) | - | - |
Interest left is what you still owe in interest from today until the loan is paid off. Total cost left adds every remaining payment plus closing costs.
Monthly saving is the drop in your payment. Lifetime saving compares all interest left on each loan and subtracts closing costs.
For beginners: how to read this result
Start with a refinance goal preset or enter your own figures. You need four numbers from your current loan – remaining balance, current interest rate, years left and the current monthly principal-and-interest payment – plus three for the new loan: the new rate, the new term and the closing costs.
How the verdict is decided
The calculator works out the new monthly payment, then compares both loans two ways. The monthly saving is the current payment minus the new payment. The lifetime saving compares the interest still owed on each loan from today until payoff and subtracts the closing costs. A refinance is rated worth it only when both the monthly payment drops and the lifetime cost falls.
The break-even point
Break-even is the central answer. It is the closing costs paid upfront divided by the monthly saving – the month when your smaller payments have repaid what the refinance cost. After that month the saving is pure gain. If the new payment is higher than the current one there is no monthly saving and the closing costs are never recovered.
Term length matters
Stretching to a longer term lowers the monthly payment but can add years of interest, so a lower payment does not always mean a cheaper loan. The lifetime saving figure exposes this: it can be negative even when the monthly saving is positive. A shorter term usually raises the payment but cuts total interest sharply.
Advanced options
You can roll the closing costs into the new loan instead of paying them upfront – this removes the break-even wait but increases the loan balance and the interest on it. The planned-years-in-the-home field triggers a warning if you would move before the break-even month, which means the refinance would not have paid for itself.
What is not included
This is an estimate using fixed rates. It does not model property taxes, insurance, mortgage points, prepayment penalties, rate changes on adjustable loans or the tax treatment of mortgage interest. Cash taken out is added to the new loan amount but is treated as money received, not a cost. Confirm the exact rate, term and closing costs with a lender before deciding.