Refinance Calculator
Refinancing swaps your current loan for a new one — usually to get a lower rate or payment. Compare payments, see how long the closing costs take to pay for themselves, and check the total cost before you commit.
Your numbers
Result
- Break-even on closing costsmonths
- 18
- Total savings until payoffNegative means the new loan costs more over its life.
- $10,369.79
| Item | Current | Refinanced |
|---|---|---|
| Monthly payment | $1732.80 | $1398.53 |
| Months remaining | 300 | 360 |
| Interest rate | 7%/year | 5.5%/year |
| Total cost until payoff | $519841.22 | $509471.43 |
The two numbers that decide a refinance
First, the break-even point: closing costs divided by the monthly savings. If refinancing costs $6,000 and saves $250 a month, you break even in 24 months — it only makes sense if you'll keep the loan (and the house) longer than that. Second, the total cost until payoff: a lower payment over a *longer* term can still cost more in the end.
Watch the term reset
Refinancing 25 remaining years into a new 30-year loan restarts the clock: the payment drops both because the rate is lower *and* because you're stretching the debt over more years — and those extra years accrue interest. To capture the rate without the stretch, consider matching the remaining term (e.g., a 20- or 25-year refi) or keep paying the old payment amount on the new loan.
When refinancing makes sense
The classic triggers: your rate is meaningfully above market (a common rule of thumb is at least 0.5-1 point lower), your credit improved since the original loan, you want to drop PMI after building equity, or you're switching from an adjustable to a fixed rate. Get quotes from more than one lender — closing costs and rates vary widely for the same borrower.
Informational and educational result. Not a substitute for professional advice.
Frequently asked questions
Sources
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Copy the code and paste it into your site or blog. Credit with a link back to Contania is included, and the height adjusts itself.
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