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Refinance calculator
Is a refinance worth it? Compare your current loan with a new one and see the monthly savings, how long the closing costs take to earn back, and the change in total interest.
Your current loan
The new loan
All figures are estimates for planning only. Property tax is estimated at 1.15% and home insurance at 0.30% of the home’s value per year; HOA dues and mortgage insurance are also estimates. Actual figures vary by property, coverage and lender. Enter your own figures where you know them. Not a quote or a commitment to lend.
When refinancing makes sense
The classic test is simple: the monthly savings should repay the closing costs well before you expect to sell or refinance again. A break-even of two to three years is comfortable for most homeowners. Five years or more is worth a harder look.
There are other good reasons to refinance besides a lower rate. Moving from an adjustable rate to a fixed one removes future payment risk. Refinancing an FHA loan into a conventional one can drop mortgage insurance once you have 20% equity. Shortening the term from 30 to 15 years costs more each month but can save a large amount of interest.
When it does not
If your current rate is already low, a cash-out refinance to pull equity usually costs more than it saves, because the new rate applies to your whole balance. A home equity line of credit leaves that rate in place. Our side-by-side comparison runs both with your numbers, and our refinance page explains the options in more detail.
Questions people ask
What is a refinance break-even point?
The number of months it takes for the monthly savings to repay the closing costs. If you will keep the home and loan longer than that, the refinance pays for itself.
Should I roll closing costs into the new loan?
It keeps cash in your pocket but adds to the balance, so you pay interest on the costs. Check the box above to see how it changes the payment. A lender credit from a slightly higher rate is another way to cover costs.
Does restarting a 30-year term cost me money?
It can. A lower payment over a longer term may mean more total interest. The lifetime interest line above shows the difference. Choosing a term close to what you have left keeps the comparison fair.
I have a low rate but need cash. Should I refinance?
Usually not. A HELOC borrows against your equity without replacing the low-rate first mortgage. See HELOC vs cash-out refinance.