Should You Refinance Your Mortgage?
This refinance calculator compares your current mortgage payment with a new rate and term, so you can see how much you would save each month and how long it takes to break even on the closing costs. Enter your balance, your current rate and years left, the new rate and term, and your closing costs to get an instant answer. Everything runs in your browser, so your figures stay private.
How refinancing saves money
Refinancing replaces your existing mortgage with a new loan, usually to get a lower interest rate. A lower rate reduces your monthly payment and the total interest you pay. The catch is the closing costs, which is why the break-even point matters: it is the number of months of savings it takes to recover those costs.
When refinancing makes sense
Refinancing is often worth it when rates have dropped meaningfully since you took out your loan and you plan to stay in the home past the break-even point. If you would move or sell before then, the savings may not cover the costs. Resetting to a longer term lowers the payment but can increase total interest, so compare both the monthly saving and the lifetime cost.
Watch the term
- Lower rate, same term — the cleanest win: lower payment and less total interest.
- Shorter term — higher payment but big interest savings if you can afford it.
- Longer term — lower payment, but you may pay more interest overall.
Estimates only — not financial advice. This compares principal and interest; your real offer depends on your lender, credit and fees.