Mortgage Refinance Calculator
Compare your current mortgage payment with a new loan to see if refinancing saves you money - and how long it takes to break even on closing costs.
Current Loan
New Loan
Remaining Balance
$331,967
After 5 years of payments
Current Payment
$2,507
30yr @ 7.75%
New Payment
$2,209
30yr @ 7%
Monthly Savings
$299
You save $299/mo
Lifetime Savings
-$51,157
After closing costs
Breakeven
2yr 4mo
To recoup closing costs
Refinancing makes financial sense if you plan to stay in the home for at least 2 years and 4 months to recoup the $8,299 in closing costs.
Recommended Annual Income
$94,672 or more
To comfortably afford the new 30-year payment of $2,209/mo, you need at least this annual pre-tax income (28% DTI guideline).
That's $7,890/mo gross income
Create a full plan
Create a free plan to see your complete financial picture
Try it freeNo signup requiredUnderstanding Mortgage Refinancing
When does refinancing make sense?
Refinancing typically makes sense when you can lower your interest rate by at least 0.5 - 1%, plan to stay in your home long enough to recoup closing costs (the "breakeven point"), or want to switch from a 30-year to a 15-year term to pay off your home faster.
What are typical closing costs?
Closing costs for a refinance typically range from 2% to 5% of the loan amount. On a $300,000 loan, that's roughly $6,000 - $15,000. Some lenders offer "no-cost" refinances, but they usually roll the costs into a higher interest rate.
What is the breakeven point?
The breakeven point is how many months of lower payments it takes to offset the closing costs. If refinancing saves you $200/month and closing costs are $6,000, your breakeven is 30 months. If you move before then, refinancing costs you money.
Related calculators
Mortgage Calculator
Calculate monthly payments, total interest, and amortization for any home loan.
Home Equity Loan Calculator
See how much you can borrow against your home equity with monthly payments and LTV analysis.
Rent vs Buy Calculator
Compare the true cost of renting vs buying a home - including appreciation, taxes, and opportunity cost.