Refinance Calculator
Put in the loan you have and the loan you're offered. You get the new payment, what you save each month, the month the closing costs are paid back, and the total interest over the life of each loan, which is the number that decides it.
Your current loan
The new loan
Verdict
Rate scenarios same balance, costs and term
| New rate | New payment | Monthly change | Break-even | Lifetime interest | vs staying put |
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Questions people ask
When does refinancing make sense?
When the monthly savings pay back the closing costs well before you expect to sell or refinance again. The break-even month is closing costs divided by the monthly saving. Keep the loan at least twice that long and it usually makes sense.
Does a lower payment always mean I save money?
No. Restarting a 30-year clock lowers the payment but can add years of interest. Look at the lifetime interest line, not just the payment.
What closing costs should I expect?
Usually 2 to 5 percent of the loan: lender fees, appraisal, title, escrow. Points that buy down the rate are extra and should pass the same break-even test.
Should I refinance into a shorter term?
If you can carry the payment, a 15-year at a lower rate cuts total interest sharply. Set the new term to 15 and compare the lifetime line.