Refinance Calculator
Compare refinance assumptions, closing costs, payment changes, and estimated break-even timing.
Calculate with Refinance Calculator
Current Mortgage
New Refinance Loan
Refinance Analysis
⚠ Based on these numbers, refinancing may not provide significant savings. Consider a lower rate or shorter term.
Loan Comparison
| Current Loan | New Loan | Difference | |
|---|---|---|---|
| Loan Amount | $250,000 | $250,000 | $0 |
| Interest Rate | 6.5% | 5.5% | -1.00% |
| APR | 6.500% | 5.684% | -0.816% |
| Loan Term | 25 years | 30 years | 5 years |
Assumptions
Use Refinance Calculator for housing-cost and ownership planning when you need a clear estimate, transparent inputs, and a result you can review before taking the next step.
Worked example
When To Use Refinance Calculator
- Start with a representative scenario in Refinance Calculator so rates, dates, balances, or other key assumptions match the question you are comparing.
- Review whether the estimate matches the planning scenario before you use it for a budget, plan, or discussion.
Sample Input And Output Checks
- Start with inputs that match the real scenario, not only a rounded placeholder.
- Review home price, rent growth, closing costs, property tax, insurance, and time horizon before trusting the output.
- Confirm lender quotes, tax bills, HOA terms, and local market assumptions before using an estimate for a real housing decision.
About This Tool
Our refinance calculator compares your current mortgage assumptions with a new loan scenario, closing costs, estimated break-even timing, and lifetime interest difference. Use the output as a planning estimate, then verify lender fees, taxes, escrow changes, and loan terms before making a refinance decision. Use our Mortgage Calculator to estimate payments on different loan scenarios.
When to Refinance Your Mortgage
Refinancing may be worth comparing when rates, term length, PMI, cash-out needs, or fixed-rate stability have changed. The model is most useful when you test several cases: closing costs paid upfront, costs rolled into the loan, and a no-closing-cost quote with a higher rate. If you plan to move soon, monthly savings may not recover the transaction costs.
Understanding Break-Even Point
The break-even point estimates how long monthly payment savings take to offset refinancing closing costs. If closing costs are $5,000 and the modeled payment is $200/month lower, break-even is about 25 months. Compare that timing with how long you expect to keep the home and confirm whether escrow, taxes, insurance, and lender fees change the estimate. Our Amortization Calculator can help you visualize payment schedules and total interest costs.
Refinancing Costs to Consider
Refinancing costs vary by lender, state, loan size, and program. They can include appraisal, origination, title, credit report, attorney, recording, prepaid tax, and insurance items. Compare total cost scenarios: paying costs upfront, rolling costs into the loan, or accepting a higher rate with fewer upfront fees. Before relying on the result, check the official loan estimate from your lender and confirm the new payment fits your budget.