When should I refinance my mortgage?

Generally, refinancing makes sense when you can get a rate at least 0.5-1% lower than your current rate and expect to stay in the home long enough to break even.

What is break-even point in refinancing?

Break-even is the number of months it takes for your monthly savings to offset the closing costs. If break-even is less than your planned stay, refinancing is typically worthwhile.

Are closing costs part of refinancing?

Yes. Closing costs typically range from 2-5% of the loan amount. These are upfront costs that must be recovered through monthly savings.

Mortgage Refinance Calculator

Compare your current mortgage with a refinance option and calculate total savings.

Current Loan

Current Loan Balance

$1k - $5M

Current Interest Rate

0.1% - 30%

Remaining Term (Years)

1 - 30 years

New Loan

New Interest Rate

0.1% - 30%

New Term (Years)

1 - 30 years

Closing Costs

$0 - $50k

Current Monthly Payment $1,897

New Monthly Payment $1,593

Monthly Savings $304

Break-Even (Months) 16

Current Total Interest $267,200

New Total Interest $182,300

Total Savings (Life) $84,900

When to Refinance Your Mortgage

Refinancing can save you thousands of dollars in interest, but it's not always the right move. The decision depends on interest rate savings, closing costs, and how long you plan to stay in your home.

Key Decision Factors:

Rate Difference: A 0.5-1% rate reduction is typically needed to justify closing costs

Break-Even Point: Calculate how many months of savings equal closing costs

Loan Term: Shortening your term accelerates equity building and interest savings

Closing Costs: These upfront costs must be recovered through monthly savings

Types of Refinancing

Rate-and-Term Refinance: Changes the interest rate or loan term without borrowing additional money. This is the most common type.

Cash-Out Refinance: Allows you to borrow against home equity. Useful for debt consolidation or major expenses, but increases your loan balance.

FHA Streamline: For FHA loans, offering faster approval and lower costs. Limited to refinancing existing FHA loans.

Mortgage Refinance Calculator

Current Loan

New Loan

When to Refinance Your Mortgage

Key Decision Factors:

Types of Refinancing

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