Mortgage Refinance Calculator
Compare your current mortgage with a new one: your new payment, what you save each month, when the closing costs pay for themselves and what you save overall.
Down from $2,162.20: $315.05 a month less
Current loan vs new loan
What's left to pay on each, year by year, and what each costs from today.
How to tell if refinancing is worth it
Refinancing replaces your mortgage with a new one, usually to get a lower rate or a lower payment. It isn't free: a new loan comes with closing costs, often 2% to 5% of the amount. Whether it pays off comes down to two numbers this calculator works out for you.
The break-even point is how long the monthly savings take to cover the closing costs. If you expect to sell or refinance again before then, you lose money. Lifetime savings compares everything you'd still pay on your current loan with everything you'd pay on the new one, closing costs included. A longer new term can lower the payment and still cost more overall, because you pay interest for more years.
Frequently asked questions
When does it make sense to refinance?
Usually when the new rate is low enough that you break even well before you expect to move, and the lifetime savings are positive. A common rule of thumb is a rate at least 0.5 to 1 point lower than your current one, but closing costs, your balance and how long you'll stay matter more than any rule. Try your own numbers above.
What is the break-even point?
It's the closing costs divided by the monthly savings. With $6,000 in costs and $300 a month in savings, you break even after 20 months. Every month you keep the loan after that is money saved.
Should I roll the closing costs into the loan?
Adding them to the new loan means no cash at closing, but you borrow more and pay interest on the costs for the whole term. Paying them upfront costs less overall if you have the cash.
What is a cash-out refinance?
You take a new loan for more than you owe and receive the difference in cash, for example to pay for repairs or pay off higher-rate debt. Your balance and payment go up, and most lenders want you to keep at least 20% equity in the home.
Does a shorter term save money?
Yes, usually a lot. Moving from 30 to 15 years raises the payment but often comes with a lower rate and cuts the total interest sharply. Switch the new term above to compare.
Estimates for illustration only, not a loan offer or financial advice. Your actual rate, closing costs and payment depend on the lender, your credit and your home's value. Taxes, insurance and PMI are not included. LoanQuantum is not a lender.
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