Refinance calculator
Your new payment, monthly savings, break-even on closing costs and the lifetime cost of refinancing.
- ๐บ๐ธ US federal & state rules
New monthly payment
$1,847.15
$265.43 less than your current $2,112.58
- Monthly savings
- $265.43
- Break-even on closing costs
- 23 months (1 year 11 months)
- Lifetime cost difference
- You save $13,502
This is an example. Enter your numbers above and press the button to see your own result.
Current loan vs new loan
| Loan amount | $300,000 vs $300,000 |
|---|---|
| Rate | 7.25% vs 6.25% |
| Months left | 324 vs 360 |
| Monthly payment | $2,112.58 vs $1,847.15 |
| Interest still to pay | $384,477 vs $364,975 |
| Total still to pay, with costs | $684,477 vs $670,975 |
- The new loan runs 3 years longer than what is left on your current one, so a lower payment can still cost more in total.
- Principal and interest only. Taxes, insurance and PMI usually stay about the same after a refinance.
- Break-even ignores the interest you could earn on the closing cost money. If you plan to move before the break-even month, the refinance likely costs you.
Show the math
| Current payment | $300,000 at 7.25% over 324 months = $2,112.58 |
|---|---|
| New loan amount | $300,000 |
| New payment | $300,000 at 6.25% over 360 months = $1,847.15 |
| Break-even | $6,000 รท $265.43 = 22.6 months |
What to do next
How it works
The current payment is figured from your balance, rate and years left. The new payment uses the same balance, plus closing costs if you roll them in, at the new rate and term. Monthly savings is the difference.
Break-even is closing costs divided by monthly savings. The lifetime comparison adds up every remaining payment on each loan, plus closing costs paid in cash.
Things to keep in mind
A cash-out refinance, a change in PMI or a different escrow amount will change the real numbers. Use the rate and fees from an actual Loan Estimate when you have one.
Frequently asked questions
How do I know if refinancing is worth it?
Divide closing costs by the monthly savings to get the break-even month. If $6,000 in costs saves $250 a month, you break even after 24 months, so it pays off only if you keep the loan longer than that.
Why can a lower payment cost more overall?
Starting a new 30-year loan on a balance with 27 years left adds three years of payments. The monthly bill drops, but total interest can rise. Compare the lifetime row.
Should I roll closing costs into the loan?
It saves cash today but you pay interest on those costs for the life of the loan. Turn the option on to see the effect on the payment and break-even.
Does this include taxes and insurance?
No. Escrow for property tax and insurance usually stays about the same after a refinance, so it does not change the savings.