Refinance Calculator

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.

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.

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.

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.

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).