Refinance calculator
Compare your current loan with a new one over the same number of years, including the cost of refinancing.
Current loan
New loan
No cash out is assumed. Taxes, insurance, mortgage-insurance changes, tax effects, and prepayment penalties are left out.
Monthly payment goes down by
Over 5 years the new loan costs $1,102 less in interest and closing costs.
| Current | New | |
|---|---|---|
| Principal and interest | $2,120 | $1,896 |
| Balance after 5 years | $273,486 | $280,833 |
Simple break-even: 23 months (1 yr 11 mo) of payment savings to cover the closing costs. It ignores differences in how fast each loan is paid down.
Educational estimate only. Not a rate quote, loan offer, or approval. Rates shown are assumptions you can edit. Your numbers stay in your browser.
How this calculator works
The calculator runs both loans forward for the number of years you enter. It compares the interest paid on each, adds the refinance costs to the new loan, and shows the balance left on each.
The simple break-even is the refinance cost divided by the monthly payment savings. It is a useful first check, but it ignores how fast each loan pays down principal, so the borrowing-cost comparison is the better guide.
Common questions
When does refinancing make sense?
Generally when you will keep the new loan past its break-even point and the total borrowing cost over that time is lower. A lower payment alone is not enough, because restarting a 30-year term can raise the total interest paid.
Should I roll closing costs into the new loan?
It lowers the cash you need now, but you pay interest on those costs for as long as you keep the loan. Check the box above to see the difference.
Does this cover cash-out refinancing?
No. This comparison assumes the new loan pays off the current balance only.
A loan officer can walk through them with you. It costs nothing to ask.