United States
US refinance calculator
Compare your current mortgage to a new rate — new monthly payment, break-even on closing costs, and lifetime savings.
Refinance outcome
$266.00
Monthly savings
- New monthly payment
- $1,896.20
- Current payment
- $2,162.20
- Break-even point
- 1 yr 4 mos
- Lifetime savings (net of costs)
- $13,920
If your new rate lands differently
Quoted rates move before you lock. Here is the same comparison at a few nearby rates — nothing here is a prediction.
| New rate | Monthly | Break-even |
|---|---|---|
| 6.00% | −$363.55 | 1 yr |
| 6.25% | −$315.05 | 1 yr 1 mo |
| 6.50%(quoted) | −$266.00 | 1 yr 4 mos |
| 6.75% | −$216.41 | 1 yr 7 mos |
| 7.00% | −$166.29 | 2 yrs 1 mo |
An estimate to help you plan — not financial advice or a loan offer. An estimate of principal & interest only — your actual savings depend on closing costs, loan type, and how long you stay. Not a lending offer.
Refinancing a US mortgage replaces your loan with a new one — usually to grab a lower rate, change the term, or take cash out. It costs closing fees, so the real question is the break-even: how many months of lower payments it takes to recover those costs. This calculator finds it.
How this calculator works
A lower rate cuts your monthly principal and interest; the calculator compares your current payment with the new one to find the monthly saving.
Refinancing carries closing costs, often 2–5% of the loan. Break-even is closing costs ÷ monthly saving — if you'll stay in the home past that point, refinancing pays off.
A cash-out refinance borrows against your equity at the same time; a rate-and-term refinance just changes the rate or the length.
A worked example
Refinancing a $400,000 balance from 7% to 6% with $6,000 in closing costs:
- Old payment (7%) → new (6%)
- $2,661 → $2,398/mo
- Monthly saving
- $263/mo
- Break-even
- 23 months
Refinance only if you'll stay past the break-even; otherwise the closing costs outweigh the savings.
Who it's for
- You want to know if refinancing actually saves money.
- You need the break-even point for the closing costs.
- You're weighing a lower rate against upfront fees.
Frequently asked questions
Should I refinance my mortgage?
Refinance if you'll keep the home past the break-even point — closing costs divided by monthly saving. Past that, the lower rate is pure saving.
What is the refinance break-even point?
The number of months of lower payments needed to recover your closing costs. Break-even = closing costs ÷ monthly saving.
How much does it cost to refinance?
Typically 2–5% of the loan in closing costs — appraisal, origination, title, and so on — similar to the costs of the original mortgage.
What is a cash-out refinance?
A refinance where you borrow more than you owe and take the difference in cash, using your home equity — useful for renovations or debt consolidation, but it raises your balance.