Refinance Calculator
Should you refinance? Enter your current loan and the new rate you're being offered to see your monthly savings, break-even months, and lifetime interest saved. Compare a 30-year refi to a 15-year in seconds.
Break-even is under 36 months and you're saving cash every month. If you plan to stay in the home past break-even, this refi likely pays off.
VA borrowers should also compare against a VA IRRRL Streamline refinance, which skips the appraisal and full income doc. If you're weighing loan programs, compare VA vs FHA side-by-side.
Related calculators
Before refinancing, make sure your debt-to-income ratio still qualifies at the new payment — DTI is the first thing lenders re-verify. If you're considering a cash-out refi and want to see how much home you could buy on today's numbers, run the affordability calculator. Weighing whether to refi or sell? The rent vs buy calculator models the alternative. Veterans should compare this against the VA entitlement calculator to see whether an IRRRL is a better fit. Plan your monthly payment in the mortgage payment calculator and your cash to close in the closing costs calculator.
Frequently asked questions
Is it worth refinancing my mortgage?
The two-question test: (1) Do the monthly savings pay back closing costs within your expected time in the home? (2) Will you keep the loan long enough to capture the lifetime interest savings? A rule of thumb: refinancing usually pays off if your new rate is at least 0.75% lower AND your break-even is under 36 months.
How is the break-even point calculated?
Break-even months = closing costs ÷ monthly savings. If closing costs are $6,000 and you save $250/month, break-even is 24 months. Refinance only if you plan to stay in the home well past that point.
What closing costs come with a refinance?
Typical refi closing costs run 2%–5% of the loan amount: lender fees, appraisal ($500–$700), title insurance, escrow, recording, and prepaid taxes/insurance. VA IRRRL and FHA Streamline refis skip the appraisal and full income doc, keeping costs at the low end.
Should I refinance to a 15-year or stay 30-year?
A 15-year almost always carries a lower rate (~0.5% less) and dramatically less lifetime interest. The trade-off is a materially higher monthly payment. If cash flow allows it, 15-year wins on wealth-building; if you'd rather keep the payment low and invest the difference, 30-year wins.
Does refinancing hurt my credit score?
Only marginally and only temporarily. The hard inquiry drops your FICO by 3–5 points and the new tradeline briefly resets your average account age. Scores typically recover within 3–6 months of on-time payments.