Compare your current mortgage with a proposed refinance to estimate monthly payment savings, refinance costs, a simple break-even point and potential savings over the time you expect to keep the new loan.
Enter the remaining terms of your current mortgage and the proposed refinance.
Compare payment, term and estimated remaining interest before deciding how the refinance fits your goals.
This table compares estimated interest paid under each loan and subtracts the upfront refinance costs.
| Time | Current Loan Interest | Refinance Interest | Upfront Refinance Cost | Estimated Financing-Cost Difference |
|---|
Refinancing a mortgage can involve upfront costs such as lender fees, appraisal expenses, title-related charges and other closing costs.
A simple break-even calculation asks how long the estimated monthly payment savings would take to recover those upfront costs.
The calculator compares the principal-and-interest payment on your remaining current mortgage with the payment on the proposed new loan.
A lower interest rate does not automatically mean refinancing will save money. The cost of obtaining the new loan can offset part of the benefit, especially if you expect to sell, refinance again or pay off the loan soon.
Restarting with a longer loan term can reduce the monthly payment even when the interest-rate reduction is modest. However, extending repayment can also increase the amount of time interest accrues.
This page therefore shows both a simple payment break-even calculation and an estimated financing-cost comparison over your expected holding period.
This calculator assumes closing costs are paid upfront rather than added to the new loan balance. Taxes, insurance, escrow changes, tax effects, investment returns and the time value of money are not included.
A simple refinance break-even point estimates how many months of payment savings are needed to recover the upfront cost of refinancing.
If the proposed principal-and-interest payment is equal to or higher than the current payment, there is no simple payment-savings break-even point. Refinancing may still change the loan term or other features, but those require a broader comparison.
No. Closing costs, the new loan term, how long you plan to keep the mortgage and other factors can materially affect the result.
Extending repayment over more years may lower the monthly payment, but it can also keep the balance outstanding longer and may increase total lifetime interest.
Yes. Enter the estimated refinance closing costs and any lender credits. The calculator subtracts lender credits from costs to estimate the net upfront amount used in the break-even calculation.
No. It compares mortgage principal and interest. Property taxes, homeowners insurance and escrow amounts generally depend on the property rather than the mortgage rate itself.
It compares estimated mortgage interest paid during the holding period. The refinance side also includes the entered net upfront refinance costs. It is an educational estimate and does not include tax effects or the time value of money.