Refinance Calculator
Current Loan
Please enter a valid balance
Please enter a valid payment
Please enter a valid interest rate
Please enter a valid loan amount
360 months
Please enter a valid term
240 months
Please enter a valid term
Please enter a valid interest rate
New Loan
240 months
Please enter a valid term
Please enter a valid interest rate
Please enter valid points (0-10)
Please enter valid fees
Please enter a valid cash out amount
Ready to Calculate
Enter your loan details and click Calculate to see your refinancing options
Results
APR for New Loan
0.000%
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New Monthly Payment
$0.00
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Lifetime Savings
$0.00
Total savings over loan life
Cost Analysis
Upfront Cost
$0.00
Break Even Point
-- months
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Calculating...
Our free Refinance Calculator instantly compares your current loan against a new loan — showing you the new monthly payment, true APR including fees and points, total lifetime savings, break-even point, and a side by side cost comparison so you can decide with confidence whether refinancing makes financial sense.
How to Use This Calculator
1
Choose whether you know your remaining balance or your original loan amount — then enter the relevant current loan details.
2
Enter your current interest rate and monthly payment — these are the baseline numbers the calculator compares against.
3
Enter the new loan term, new interest rate, and any points the lender charges for the new loan.
4
Enter all closing costs and fees for the new loan — and any cash-out amount if you are doing a cash-out refinance.
5
Click Calculate to instantly see your new payment, APR, break-even point, lifetime savings, and whether refinancing is recommended.
When Does Refinancing Make Sense?
| Scenario | Good Idea? | Key Factor |
|---|---|---|
| Rate dropped 1% or more since your loan | ✅ Usually Yes | Monthly savings exceed closing costs within 2 to 3 years |
| Credit score improved significantly | ✅ Often Yes | Better score qualifies you for lower rate |
| Switching from ARM to fixed rate | ✅ Good for stability | Protects against rising rates |
| Shortening loan term (30yr to 15yr) | ⚠️ Depends | Higher payment but much less total interest |
| Extending loan term for lower payment | ⚠️ Use carefully | Lower payment but more total interest paid |
| Planning to sell home within 2 years | ❌ Usually No | Will not reach break-even point before selling |
| High upfront costs — break-even over 5 years | ❌ Risky | Too long to recover costs — market may change |
Frequently Asked Questions
The break-even point is the number of months it takes for your monthly savings from refinancing to fully cover the upfront costs — points, closing fees, and other charges. For example if refinancing costs $4,000 upfront and saves you $150 per month the break-even point is about 27 months. If you plan to stay in your home longer than the break-even point refinancing makes financial sense. If you might move or sell before that point you may not recover the costs.
The interest rate is the base cost of borrowing — it determines your monthly payment. The APR (Annual Percentage Rate) includes the interest rate plus all upfront fees and points spread across the loan term — giving you the true annualized cost. When comparing loan offers from different lenders always compare APRs not just interest rates. A loan with a lower interest rate but high fees may actually cost more than a loan with a slightly higher rate and lower fees.
Mortgage points (also called discount points) are upfront fees paid to the lender in exchange for a lower interest rate. One point equals 1% of the loan amount. For example on a $250,000 loan one point costs $2,500. Whether paying points makes sense depends on how long you keep the loan. If you plan to stay long term paying points to get a lower rate can save significant money. If you might refinance again or sell soon the upfront cost is rarely worth it.
A cash-out refinance replaces your existing mortgage with a larger loan — you take the difference in cash. For example if you owe $200,000 and your home is worth $350,000 you might refinance for $250,000 and receive $50,000 cash. This can be a smart move for home improvements that increase value, consolidating high-interest debt, or major expenses. However it increases your loan balance and monthly payment — and puts your home equity at risk — so it requires careful consideration.
Want to Understand Refinancing Fully Before You Decide?
Read our complete guide — what refinancing is, types of refinance, when it makes sense, costs explained, and smart tips before you apply.