Homeowner Tool

Refinance Calculator

Name: Domestic Real Estate
Address: US
Price range: $$$

Compare your payment today against a new rate — and see the month the savings finally pay back the closing costs.

Your loan today

Remaining Balance$320,000

Current Rate7.250%

Years Left26 years

The new loan

New Rate5.875%

New Term

Closing Costs3% ($9,600)

Break-even point

25 months

Stay in the home past month 25 and the refinance has paid for itself.

Payment today$2,282/mo

New payment$1,893/mo

Monthly saving$389

Interest left on current loan$391,902

Interest on new loan$361,452

Lifetime saving$20,851

Estimates only, based on the numbers you enter. Principal and interest only — taxes, insurance and any mortgage insurance are excluded. Your actual rate depends on your credit, loan-to-value and lender.

Refinancing questions

When is refinancing worth it?: When you will stay in the home longer than the break-even period — the number of months it takes for the lower payment to repay the closing costs. If you plan to sell before that month arrives, refinancing costs you money even at a lower rate.
Does a lower rate always mean lower total interest?: No. Resetting a loan you are ten years into back to a fresh 30-year term can raise your lifetime interest even at a lower rate, because you restart the schedule where almost every payment is interest. This calculator shows both the monthly saving and the lifetime difference so you can see when that happens.
What do refinance closing costs usually run?: Commonly 2–5% of the loan amount, covering origination, appraisal, title and recording. Some lenders offer a "no-cost" refinance that folds those fees into the rate or the balance instead — which means you still pay them, just differently.
How much does my credit score matter?: A great deal. The rate you are quoted moves with your score, your loan-to-value ratio and your debt-to-income ratio. Get an actual quote before trusting any advertised rate, including the default in this calculator.

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Refinancing questions

When is refinancing worth it?

When you will stay in the home longer than the break-even period — the number of months it takes for the lower payment to repay the closing costs. If you plan to sell before that month arrives, refinancing costs you money even at a lower rate.

Does a lower rate always mean lower total interest?

No. Resetting a loan you are ten years into back to a fresh 30-year term can raise your lifetime interest even at a lower rate, because you restart the schedule where almost every payment is interest. This calculator shows both the monthly saving and the lifetime difference so you can see when that happens.

What do refinance closing costs usually run?

Commonly 2–5% of the loan amount, covering origination, appraisal, title and recording. Some lenders offer a "no-cost" refinance that folds those fees into the rate or the balance instead — which means you still pay them, just differently.

How much does my credit score matter?

A great deal. The rate you are quoted moves with your score, your loan-to-value ratio and your debt-to-income ratio. Get an actual quote before trusting any advertised rate, including the default in this calculator.