Refinance Savings Calculator
See if refinancing your mortgage saves money and how long until you break even.
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Refinancing replaces your current mortgage with a new one at a different rate or term. The key question is whether the monthly savings outweigh the closing costs. This calculator shows your new payment, monthly savings, how many months until you break even on closing costs, and the total savings over the life of the new loan.
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Frequently asked questions
Refinancing generally makes sense when you can lower your rate by at least 0.5-1%, plan to stay in the home past the break-even point, and the closing costs are reasonable (typically 2-5% of the loan amount).
Closing costs typically run 2-5% of the loan amount, or $3,000-$6,000 on a $200,000 loan. They include appraisal ($300-600), title insurance, origination fees and recording fees.
A shorter term (15 or 20 years) means higher monthly payments but dramatically less total interest. If you can afford the payment, it builds equity faster and saves tens of thousands in interest.
Yes, refinancing to a new 30-year term restarts the amortization clock, which means more interest in the early years. To keep your payoff timeline, consider a shorter term that matches your remaining years.
You can refinance with a credit score as low as 620 for conventional loans, but better scores get better rates. FHA streamline refinances may have lower requirements if your current loan is FHA.