Refinance Calculator

The most important metric in refinancing is the Break-Even Point. If your closing costs are $5,000 and your new mortgage saves you $200 per month, your break-even point is 25 months ($5,000 / $200). If you plan to sell your home in two years, refinancing would actually lose you money. However, if you plan to stay for five or ten years, you would net thousands in savings. Our calculator does this math for you instantly. Another key strategy is the Term Reduction. Many homeowners refinance from a 30-year to a 15-year mortgage when rates drop. While your monthly payment might stay the same or even increase slightly, the amount of interest you save over the life of the loan can be staggering—often exceeding $100,000. Our tool allows you to compare different terms side-by-side to see which path builds your wealth fastest.

Be wary of the "No-Cost Refinance." In these deals, the lender either adds the closing costs to your loan balance or increases the interest rate to cover the fees. While this reduces your "out-of-pocket" expense today, it means you are paying interest on those costs for the next 30 years. Our calculator allows you to "roll in" the closing costs so you can see the true long-term impact on your principal balance. Finally, remember that refinancing restarts the clock on your mortgage. If you have already paid 10 years into a 30-year loan and refinance into a new 30-year loan, you are extending your debt by a decade. Consider a "custom term" (like a 20-year loan) to maintain your current payoff schedule while still benefiting from a lower rate.