Mortgage Refinance Calculator
Compare your current mortgage with a refinance option and find your break-even point.
Compares your current mortgage with a new rate, term, and closing costs, then shows break-even months. It is not a cash-out underwriting tool and not a generic loan payment page.
Formula
New payment uses the same amortizing formula on the remaining balance (plus cash-out if you enter it). Break-even ≈ closing costs / monthly savings.
How to calculate
- Enter the current balance, rate, and remaining term.
- Enter the new rate, new term, and estimated closing costs.
- Compare monthly payments and divide costs by the monthly saving to get break-even.
Example
If the new payment is $180 lower and costs are $5,400, break-even is 5,400 / 180 = 30 months — only worth it if you keep the loan longer than that.
Common mistake
A lower rate with a reset 30-year term can cut the payment but raise lifetime interest. Check total interest, not only the monthly number.
FAQ
How do I know if refinancing is worth it?
Divide closing costs by the monthly payment reduction. If you will keep the loan past that many months, the refinance can pay for itself — ignoring moving costs and tax effects.
Does this include cash-out refinance?
If you increase the new balance, the extra principal is cash-out. The payment and break-even then use that larger loan.