Mortgage Refinance Calculator
Thinking about refinancing? Enter your new loan details to see your potential new monthly payment, then compare it against what you're paying now.
= $80,000
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When Does Refinancing Make Sense?
Refinancing typically makes sense when you can reduce your interest rate by at least 0.5–1%, you plan to stay in your home long enough to recoup the closing costs, or you want to switch from an adjustable-rate to a fixed-rate mortgage.
The Break-Even Point
Your break-even point is how long it takes for monthly savings to cover your refinancing closing costs (typically 2–5% of the loan amount). If you plan to sell before break-even, refinancing may not save you money.
- Closing costs: typically $3,000–$6,000 on a $300K loan
- Monthly savings: difference between old and new payment
- Break-even months = Closing costs ÷ Monthly savings
Rate-and-Term vs Cash-Out Refinance
A rate-and-term refinance replaces your current mortgage with a new one at a lower rate or shorter term. A cash-out refinance lets you borrow more than you owe and take the difference in cash — useful for home improvements or debt consolidation, but increases your loan balance.