Refinance Calculator
Compare your current mortgage side-by-side with a new refinanced loan offer. Calculate your monthly payment savings, lifetime interest reduction, and exact breakeven horizon in months.
Current vs. New Loan Terms
Refinance Analysis
Lending Estimate Notice: Monthly payments, taxes, PMI, and affordability limits are estimates based on standard underwriting conventions. Actual mortgage rates, closing fees, and approval terms vary by lender and borrower credit qualifications.
How Mortgage Refinancing & Breakeven Math Work
Refinancing involves paying off your existing mortgage with a newly originated loan—typically to secure a lower interest rate, adjust the repayment term, convert an adjustable-rate mortgage (ARM) to a fixed rate, or access home equity via cash out.
While lowering your monthly payment is attractive, refinancing incurs closing fees (2% to 5% of loan value). Evaluating whether refinancing is financially sound hinges on calculating your breakeven horizon—the exact point where accumulated monthly savings fully offset upfront fees.
Key Reasons to Refinance
- Rate Reduction: Lowering your interest rate by 0.75% to 1.0% can save thousands in annual interest charges.
- Term Compression: Switching from a 30-year to a 15-year mortgage significantly accelerates equity growth while slashing lifetime interest.
- PMI Removal: If your home has appreciated to 20%+ equity, refinancing can eliminate costly Private Mortgage Insurance premiums.
- Debt Consolidation (Cash Out): Consolidating 20%+ APR credit card debt into a single mortgage rate saves thousands in high-interest charges.
Frequently Asked Questions
The refinance breakeven period is the number of months required for your monthly mortgage payment savings to equal the total upfront closing costs of the new loan: Breakeven (Months) = Total Closing Costs ÷ Monthly Payment Savings. If you plan to stay in your home past this breakeven date, refinancing saves you money.