Mortgage Refinance Calculator
Calculate monthly savings, break-even point, and lifetime savings from refinancing your mortgage.
Current Loan
= 26.0 years
New Loan
Enter 0 for rate-and-term refinance
Results
When to refinance
The 1% rule of thumb
A rate drop of at least 1% is often cited as making refinancing worthwhile, but it depends heavily on how long you plan to stay and your closing costs.
Break-even analysis
Divide closing costs by monthly savings to get break-even in months. If you plan to move before that point, refinancing likely does not make financial sense.
Resetting the clock
Refinancing a 20-year-old 30-year loan into a new 30-year loan can lower payments but significantly extends your total interest paid. Consider a 15 or 20-year term.
Cash-out refinance
Lets you access home equity but increases your loan balance and total interest. Best used for high-ROI improvements or consolidating high-interest debt.
For estimation only. Does not include escrow, PMI, or tax implications. Not financial advice.