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Refinance Calculator
Compare your current mortgage with a refinance scenario to estimate monthly savings, break-even timing, and long-term interest impact.
Refinance Details
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Estimated Monthly Payment Change
-$220.85
Monthly payment decreases Based on principal and interest only30 months
Estimated months for payment savings to offset closing costs.
New loan ends 3 years later
A longer new term can lower the monthly payment, but it may increase total interest and delay payoff.
Lower monthly payment and lower lifetime interest
This scenario improves both monthly cash flow and long-term borrowing cost.
Current monthly payment
$2,261.95
New monthly payment
$2,041.10
Monthly change
-$220.85
New loan amount
$331,500.00
Closing costs
$6,500.00
Current lifetime interest
$407,871.80
New lifetime interest
$403,296.00
Interest difference
-$4,575.80
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Compare monthly payment scenarios, estimate affordability, or return to the main mortgage calculator.
How this refinance calculator works
This refinance calculator compares your current mortgage with a new loan scenario to estimate monthly payment changes, break-even timing, and total interest over the life of the loan. Adjust the interest rate, term, and closing costs to see how different refinance options impact your finances.
What does break-even mean?
The break-even point is the number of months it takes for your monthly savings to recover the upfront closing costs of refinancing. If you plan to stay in the home longer than the break-even period, the refinance may make financial sense.
When refinancing can help
Refinancing may reduce your monthly payment, lower your interest rate, shorten your loan term, or allow you to access equity through cash-out. The best scenario depends on your financial goals, how long you plan to stay in the home, and current market rates.
Why a lower payment is not the whole story
A lower monthly payment can be achieved by extending the loan term, which may increase the total interest paid over time. This calculator highlights both monthly savings and lifetime interest so you can evaluate the full tradeoff before making a decision.
Refinance rates and market context
Refinance decisions are heavily influenced by current market rates. Compare your refinance scenario with the 30-year mortgage rate and 15-year mortgage rate to understand how today’s borrowing costs affect your potential savings.
Mortgage rates are closely tied to the 10-year Treasury yield . When Treasury yields move, mortgage rates often follow, which can directly impact refinance opportunities.
You can also explore the full rate environment on the mortgage rates today homepage or review the mortgage spread to see how lender pricing compares to Treasury benchmarks.
Refinance Calculator FAQ
How does a refinance calculator work?
A refinance calculator compares your current mortgage with a new loan scenario. It estimates how your monthly payment, closing costs, break-even timing, and total lifetime interest may change if you refinance.
What is the break-even point when refinancing?
The break-even point is the number of months it takes for your monthly savings to recover the upfront closing costs of the refinance. If you plan to keep the loan longer than that period, refinancing may be more worthwhile.
Why can a refinance lower my payment but increase total interest?
A refinance can reduce your monthly payment by extending the loan term. While that may improve short-term cash flow, it can also increase the total interest paid over time if the loan remains outstanding longer.
When does refinancing make sense?
Refinancing may make sense when you can secure a lower rate, reduce your monthly payment, shorten your term, or meet another clear financial goal. The best choice depends on your closing costs, expected time in the home, and long-term interest tradeoffs.
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