Refinance Calculator
Find out how much you could save by refinancing your mortgage. Compare your current loan with new rates and see your break-even point.
Current Loan
New Loan
✅ Refinancing Saves You Money
You save $388/month and $13,256 total
What Is Mortgage Refinancing?
Mortgage refinancing replaces your existing home loan with a new one, typically to secure a lower interest rate, change loan terms, or access your home equity through a cash-out refinance. The goal is to reduce monthly payments or save money over the life of the loan.
How Does the Refinance Calculator Work?
Our calculator compares your current loan payment and total cost against a new loan with your target interest rate and term. It calculates your monthly savings, total savings over the loan life, and the break-even point — how many months to recoup your closing costs.
Why Use Our Refinance Calculator?
- Determine if refinancing makes financial sense for your situation
- See your exact monthly savings and break-even timeline
- Compare different rate and term combinations before talking to a lender
Refinance FAQ
When does refinancing make sense?+
When you can lower your interest rate by at least 0.75-1%, or when switching from an adjustable-rate to a fixed-rate mortgage. Calculate your break-even point to ensure you'll stay in the home long enough to recoup closing costs.
What are typical closing costs for refinancing?+
Usually 2-5% of the loan amount. This includes appraisal fees, origination fees, title insurance, and other charges. On a $300,000 loan, expect $6,000-$15,000 in closing costs.
How does refinancing affect my credit score?+
The hard credit inquiry may temporarily lower your score by 5-10 points. However, if refinancing lowers your monthly payment and you pay on time, your credit score can improve over time.
Can I refinance with bad credit?+
It's harder but possible. FHA streamline refinances don't require credit checks. Conventional refinances typically need a score of 620+. Improving your credit before applying can save thousands.
What is a cash-out refinance?+
A cash-out refinance replaces your existing mortgage with a larger loan, giving you the difference in cash. This is popular for home improvements or debt consolidation, but increases your loan balance.
How long does refinancing take?+
Typically 30-45 days from application to closing. Delays can occur if appraisal issues arise or if additional documentation is needed.
See How Much You Could Save by Refinancing
Get personalized refinance quotes from multiple lenders in minutes. No obligation, no impact to your credit score.
Affiliate disclosure: We may earn a commission if you complete an application.
How to Calculate Your Refinance Break-Even Point
Your break-even point is the time it takes for your monthly savings to exceed your closing costs. Divide total closing costs by monthly savings: $5,000 ÷ $150/month = 33 months. If you plan to stay in your home longer than that, refinancing makes financial sense. If you're planning to move sooner, the math probably doesn't work. Use our calculator above to find your exact break-even.
🏗️ Home Renovation & Improvement Loans
Planning home improvements? FHA 203(k) renovation loans and Fannie Mae HomeStyle loans let you roll renovation costs into your mortgage. Compare options: