Current Loan
Your existing mortgage details
About 25 years, 0 months remaining
New Loan Terms
Refinance options to compare
Typically 2-5% of loan amount ($5,600 - $14,000)
Current vs New Loan
Current Loan
New Loan
Break-Even Analysis
Closing Costs
$6,000
Monthly Savings
$261
Break-Even
23 mo
If you plan to stay in your home longer than 23 months (1 years, 11 months), refinancing will save you money.
Rate Comparison
7.25% (0.25% lower)
Break-even: 51 months
$118/mo
Save -$81,616
7.00% (0.5% lower)
Break-even: 37 months
$166/mo
Save -$64,243
6.75% (0.75% lower)
Break-even: 29 months
$214/mo
Save -$47,044
6.50% (1% lower)
Break-even: 23 months
$261/mo
Save -$30,025
6.00% (1.5% lower)
Break-even: 17 months
$354/mo
Save $3,455
Refinance Analysis
Monthly Savings
$261
Lower payment
Break-Even
23 months
Good
Consider carefully
The break-even period may be too long or savings may not justify the costs.
What if rates were lower?
See how different rates affect your refinance savings
Personalized Insights
4 insights based on your inputs
Consider Carefully
Break-even of 23 months is long. Make sure you'll stay in the home that long to benefit.
Significant Rate Drop
A 1.00% reduction is typically worth refinancing if you plan to stay 3+ years.
Extending Your Loan
Refinancing to 30 years extends your payoff. You'll pay more total interest even with lower rate.
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Frequently Asked Questions
When should I refinance my mortgage?
Generally refinance when you can lower your rate by 0.5-1% or more, plan to stay in the home past your break-even point, have good credit (720+), and have at least 20% equity. Also consider refinancing to remove PMI, switch loan types, or access cash-out equity.
What is the break-even point?
The break-even point is when your monthly savings equal the closing costs paid. After this point, you start actually saving money. Calculate by dividing closing costs by monthly savings. If break-even is 24 months and you plan to stay 5+ years, refinancing makes sense.
What are typical refinance closing costs?
Closing costs typically range from 2-5% of the loan amount. This includes appraisal ($300-600), title insurance ($500-2000), origination fees (0.5-1%), recording fees, and other lender fees. Some lenders offer "no-closing-cost" refinancing with higher rates.
Should I do a cash-out refinance?
Cash-out refinancing lets you borrow against home equity for renovations, debt consolidation, or major expenses. Rates are slightly higher than regular refinance. Only do this for value-adding purposes, not lifestyle inflation. Remember you're increasing your debt and risk.
What is the difference between rate-and-term and cash-out refinance?
Rate-and-term refinancing changes your interest rate and/or loan term without borrowing more. Cash-out refinancing lets you borrow more than you owe and pocket the difference. Cash-out has higher rates and stricter requirements (usually max 80% LTV).
How this works
Calculations are run entirely in your browser. No inputs are sent to our servers and no account is required. Formulas follow standard US definitions from the IRS and the CFPB where applicable; international users should confirm local tax and regulatory rules apply.
What this tool can’t do
When to consult a professional
This is a software engineering tool, not financial advice. Run the math here, then take the result to a certified financial planner, CPA, or your bank before making a decision that materially affects your money.
Sources
- [1]Consumer Financial Protection Bureau (CFPB)Official sourceconsumerfinance.govAccessed Apr 21, 2026
US consumer finance regulator; authoritative on mortgage disclosures, APR rules, credit cards.
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).