Refinance Calculator
Free mortgage refinance calculator. Compare current vs new loan, model closing costs, cash-out, break-even period, and lifetime interest savings with full amortization.
Frequently asked questions
When does refinancing a mortgage actually make sense?
Refinancing makes sense when the monthly savings from a lower rate recoup the closing costs before you plan to sell or refinance again — the "break-even" period. A common rule is that a rate drop of 0.75-1.0% or more is worth exploring, but the precise answer depends on your closing costs and how long you will keep the loan.
How is refinance break-even calculated?
Break-even months = total closing costs ÷ monthly payment savings. If closing costs are $6,000 and the new loan saves $200/month, break-even is 30 months. If you plan to keep the property longer than the break-even, the refinance saves money on a cash basis.
Should I roll closing costs into the new loan?
Rolling closing costs into the new loan avoids paying cash at closing but increases the loan balance, monthly payment, and total interest paid. Paying costs upfront preserves the cleanest break-even math. This calculator models both paths so you can compare directly.
What is a cash-out refinance?
A cash-out refinance replaces your existing mortgage with a larger one and gives you the difference in cash. It typically carries a slightly higher rate than a rate-and-term refi and increases your monthly payment. Use it when you have a productive use for the capital — home improvements, debt consolidation, or investment — and can service the higher payment.