Scenario tools
Mortgage Refinance
Refinancing a home
See whether a refinance could pay off after closing costs, a new rate, a new term and any cash you take out.
Enter your current balance, both loan rates and terms, and the refinance costs.
With $4,800 in net nonrecoverable costs, no prepayment penalty and $200 of initial monthly payment savings, the simple break-even is 24 months. After 18 months, the payment savings total $3,600, still $1,200 below the costs.
Financing closing costs does not make them free. They increase the new loan balance and interest. Cash applied to principal and prepaid escrow amounts are different from lender fees and should not all be entered as nonrecoverable costs.
A lower payment can also come from extending the loan. Compare remaining balances from lender amortization schedules at the date you may move or refinance again. The payment break-even shown here is not a complete comparison of equity, taxes or investment opportunity cost.
Cash taken out is additional borrowing, not a return on the refinance. Confirm points, credits, rate-lock terms and mortgage insurance in the actual offer. Property taxes and insurance are outside this loan comparison; your full household payment may still change.
Help us understand how the site is used. You can allow or decline analytics cookies, and the calculators work either way. Learn more in the privacy policy.
