A refinance replaces a mortgage with a new one at a different rate or term. Whether it pays depends on the closing costs against the monthly saving; the calculator returns the new payment, the monthly difference and the number of months to break even.
Should you refinance your mortgage? Compare your current loan with refinance options to see monthly savings, break-even point, and total interest savings.
Typically 2-5% of loan amount
Worth considering - reasonable break-even period
Monthly Savings
+$284
Break-Even
2.4 yrs
Rate Drop
1.00%
Lifetime Savings
$11,114
CURRENT
NEW
Common questions about mortgage refinancing
Input your existing loan balance, interest rate, and remaining term to establish your baseline.
Enter the proposed new interest rate, loan term, closing costs, and any cash-out amount.
See monthly savings, break-even point, lifetime savings, and a clear recommendation on whether to refinance.
Refinancing your mortgage can save thousands of dollars over the life of your loan, but only if done at the right time and for the right reasons. Our free refinance calculator helps you cut through the complexity by showing exactly how much you'll save monthly, how long it takes to recoup closing costs, and whether refinancing makes financial sense for your situation.
When mortgage rates drop, refinancing becomes an attractive option for homeowners. But the decision isn't just about the rate. You need to consider closing costs, how long you'll stay in the home, and whether extending your loan term is worth the lower monthly payment. A 30-year refinance on a mortgage you've been paying for 10 years resets the clock, potentially costing more in total interest despite a lower rate.
The best refinance decision considers your complete financial picture. Are you planning to stay long enough to reach break-even? Would a shorter term help you pay off your home before retirement? Could a cash-out refinance fund home improvements that increase property value? Use this calculator as a starting point, then consult with a mortgage professional to explore your specific options.
Financial calculators for every real estate scenario
Estimate buyer and seller closing costs by state
Calculate monthly payments, interest, and amortization
Compare the costs of buying vs renting over time
Find how much house you can afford using the 28/36 rule
Year-by-year payments on a temporary buydown, what it costs to fund, and how it compares with a permanent buydown
Two quotes side by side: the monthly saving from a lower rate and the month the points pay for themselves
Price cut vs seller credit vs rate buydown: cash to close, monthly payment and seller net for each
Calculate private mortgage insurance costs and removal date
Calculate real estate agent commissions, splits, and net proceeds
Calculate net proceeds from selling with state transfer taxes
Calculate return on investment for rental properties
Calculate capitalization rate for investment properties
Key facts
Break-even months = total closing costs ÷ monthly saving. Monthly saving = current payment − new payment on the remaining balance at the new rate and term.
The refinance pays for itself in two years; it makes sense if you will keep the loan longer than that. Resetting to a new 30-year term can raise total interest even when the payment falls.
When you will keep the loan past the break-even month, when the new loan does not add so many years that total interest rises, and when the closing costs are real, not just rolled into the balance. A rate drop of one point is a common threshold, but the break-even arithmetic is what decides it.
A refinance where the lender covers the closing costs in exchange for a higher rate, or adds them to the loan balance. The costs are still paid, through the rate or the balance, over time. It suits a borrower who expects to move or refinance again within a few years and wants no cash out of pocket.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
Agent Workspace
The workspace turns the figures you trust into a market update film, a seller net sheet in the CMA, or a buyer education video, from the same numbers. Free to start; one Pro covers every tool and every EstatePass exam channel.
Explore specific scenarios and get tailored tips, best practices, and examples.