Current Mortgage
Refinanced Mortgage
Cumulative Savings Over Time
Full Cost Comparison
| Current Mortgage | Refinanced | Difference |
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How to Use This Mortgage Refinance Calculator
Enter your current loan balance, interest rate, and remaining term on the left. Then enter the new rate, term, closing costs, and any discount points you're considering on the right. The calculator instantly shows your monthly payment change, total interest savings, breakeven timeline, and a clear recommendation on whether refinancing is worth it.
The cumulative savings chart shows how your savings grow over time after accounting for upfront costs. The crossover point where the line goes from red to green is your breakeven month — after that, you're saving money every month.
Understanding the Breakeven Point
The breakeven point is the most important metric when evaluating a refinance. It tells you how many months of lower payments you need to recoup the upfront costs of refinancing. If you plan to sell or move before reaching breakeven, refinancing will cost you more than it saves.
- Closing Costs: Typically 2–5% of the loan amount, covering appraisal, title, origination, and recording fees.
- Discount Points: Optional upfront fees (1 point = 1% of loan) that buy down your rate, typically by 0.25% per point.
- Monthly Savings: The difference between your current and new P&I payment — the fuel that drives your breakeven timeline.
Rate-and-Term vs. Cash-Out Refinance
A rate-and-term refinance (what this calculator models) replaces your existing mortgage with a new one at a different rate or term, keeping the same loan balance. A cash-out refinance lets you borrow more than you owe and pocket the difference — useful for home improvements or debt consolidation, but it increases your loan balance and total interest paid.
When to Consider Refinancing
Beyond rate savings, refinancing can make sense when switching from an adjustable-rate mortgage (ARM) to a fixed rate for payment stability, eliminating PMI by refinancing at a higher equity position, or shortening your loan term to build equity faster and pay less total interest. Always weigh the upfront costs against the long-term benefits using the breakeven analysis above.