When does refinancing make sense?
Refinancing can make sense when the new loan lowers your payment or interest cost enough to recover closing costs before you expect to sell or refinance again.
Refinance Calculator
Compare your current mortgage with a refinance option
Enter your current balance, current rate, proposed new loan terms, and closing costs to see whether refinancing lowers your payment and when the upfront cost is recovered.
Compare current and new monthly payments
Estimate break-even timing from closing costs
Review total interest and stay-period savings
Enter refinance details
Compare your current mortgage with a proposed refinance and see how the payment, total interest, and closing costs interact.
Current loan
New loan
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Total interest comparison
Current mortgage$358,968
Refinanced mortgage$345,777
Payment change
$431
Difference between your current monthly payment and the new monthly payment after refinance.
Interest savings
$13,191
Estimated lifetime interest difference before accounting for the shorter or longer term tradeoff.
Amortization comparison
Compare the current mortgage and refinance option month by month.
| Month | Current interest | New interest | Current balance | New balance |
|---|---|---|---|---|
| 1 | $1,896 | $1,531 | $349,533 | $349,599 |
| 2 | $1,893 | $1,529 | $349,063 | $349,195 |
| 3 | $1,891 | $1,528 | $348,590 | $348,790 |
| 4 | $1,888 | $1,526 | $348,115 | $348,384 |
| 5 | $1,886 | $1,524 | $347,638 | $347,975 |
| 6 | $1,883 | $1,522 | $347,157 | $347,565 |
| 7 | $1,880 | $1,521 | $346,675 | $347,153 |
| 8 | $1,878 | $1,519 | $346,189 | $346,739 |
| 9 | $1,875 | $1,517 | $345,701 | $346,323 |
| 10 | $1,873 | $1,515 | $345,210 | $345,905 |
| 11 | $1,870 | $1,513 | $344,717 | $345,486 |
| 12 | $1,867 | $1,512 | $344,221 | $345,065 |
Monthly savings is only one part
A lower payment can still cost more over time if the refinance resets the loan into a longer term. Check both payment and total interest before deciding.
Break-even matters
If you expect to move before the closing costs are recovered, the refinance may not make sense even if the rate is lower.
Compare related tools
Related refinance and mortgage pages
Refinance FAQ
What is a refinance break-even point?
Break-even is the number of months it takes for your monthly savings to equal the upfront closing costs.
Can a refinance lower my payment but increase total cost?
Yes. Extending the loan term can reduce the monthly payment while increasing the total interest paid over time.
Should I include taxes and insurance?
Yes. Taxes and insurance help you compare the total monthly housing payment instead of principal and interest alone.