Mortgage Refinance Calculator
Compare current mortgage terms against new refinanced interest rates to calculate monthly savings and breakeven point.
Refinance Comparison
Frequently asked questions
When is mortgage refinancing worth it?
Refinancing is generally worth it if you can lower your interest rate by at least 0.5% to 1% and recover closing costs before moving.
When is refinancing worth it?
When the interest saved over the time you will actually keep the loan exceeds the closing costs. The old rule of thumb about a 1% rate drop is too crude - what matters is the break-even point: closing costs divided by the monthly saving. If that is 30 months and you plan to move in two years, it does not pay.
Does refinancing reset my loan term?
Usually yes, and this is the trap. Refinancing 22 years into a 30-year mortgage back into a new 30-year loan can lower the payment while increasing total interest, because you restart the front-loaded amortisation. Refinancing into a shorter term, or making the old payment on the new loan, avoids it.
What is a no-closing-cost refinance?
Costs are either rolled into the balance or offset by accepting a higher rate - they are not waived. It can make sense if you lack cash or expect to move soon, but over a long hold the higher rate usually costs more than the fees would have. Compare total cost over your expected holding period.