Mortgage Refinance Calculator
Compare your current mortgage to a refinance. See your new monthly payment, monthly savings, closing-cost break-even point, and lifetime interest difference.
Monthly Savings
$348.60
Current Monthly Payment
$1,847.48
New Monthly Payment
$1,498.88
Break-Even Point
1 year 2 months
to recoup closing costs from monthly savings
Lifetime Interest Difference
$9,648 saved
total interest over the life of the loan
| Current Loan | Refinanced Loan | |
|---|---|---|
| Monthly Payment | $1,847.48 | $1,498.88 |
| Total Interest Paid | $304,243 | $294,595 |
| Loan Term Remaining | 25 years | 30 years |
Frequently Asked Questions
When does refinancing a mortgage make sense?
Refinancing typically makes sense when you can secure a meaningfully lower interest rate (often cited as 0.5–1% or more), plan to stay in the home long enough to recoup the closing costs, or want to change your loan term. Use the break-even calculation above to find your personal tipping point.
What is the break-even point on a refinance?
The break-even point is how many months it takes for your cumulative monthly savings to equal the upfront closing costs. For example, if you save $150/month and closing costs are $4,500, you break even in 30 months. If you sell or refinance again before that point, the refinance will have cost you money net.
Can a lower interest rate still cost me more?
Yes — resetting to a longer loan term can significantly increase the total interest you pay over the life of the loan, even with a lower rate. For instance, refinancing from 10 years remaining at 7% into a new 30-year loan at 6% lowers your monthly payment but restarts the amortization clock, dramatically increasing lifetime interest. Always compare total interest paid, not just the monthly payment.