Refinance Savings Calculator
Compare your current mortgage to a new refinance scenario, including monthly savings and the breakeven point on your closing costs.
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Ready to see your real refinance rate and closing costs?
Get a Rate QuoteHow to Know If Refinancing Makes Sense
Refinancing replaces your current mortgage with a new one, typically to secure a lower rate, change your loan term, or both. The key number to watch is your breakeven point — how many months it takes for your monthly savings to cover the closing costs of the new loan. If you plan to stay in the home longer than your breakeven point, refinancing is generally worth considering.
A rate-and-term refinance changes your rate or term without taking cash out. A cash-out refinance does both while also converting home equity into cash — that's a different calculation than this tool covers.
How to Use This Calculator
- Years Remaining — how many years are left on your current mortgage, not the original term.
- Estimated Closing Costs — typically 2-5% of the loan amount; your loan officer can give you an exact figure based on your situation.
Frequently Asked Questions
How much does it cost to refinance?
Refinance closing costs typically run 2-5% of the loan amount, covering items like the appraisal, title insurance, and origination fees. Some of these costs may be negotiable or rolled into the loan.
What's a good breakeven point for a refinance?
There's no universal answer, but generally, if your breakeven point is under 24-36 months and you plan to stay in the home longer than that, the refinance is likely worth it financially.
Can I refinance if I don't have much equity?
It depends on the loan program. Conventional refinances typically want at least some equity, but VA IRRRL and certain FHA streamline options have more flexible requirements for existing government-backed loans.
