What this calculator shows you
- Monthly Savings
- See how much you could save each month
- Breakeven Point
- Know when refinancing pays off
- Lifetime Savings
- Calculate total interest savings
- Cost Analysis
- Factor in closing costs
When to Refinance
Consider refinancing when: rates drop 0.5-1% or more, your credit has improved significantly, you want to change loan terms, or you need to tap equity. The key is ensuring savings exceed costs.
The Breakeven Calculation
Divide closing costs by monthly savings. If closing costs are $6,000 and you save $200/month, breakeven is 30 months. Only refinance if you will stay past breakeven.
Questions people ask
How much do I need to save to make refinancing worth it?
The old rule of 1% rate reduction is outdated. Calculate your breakeven point and ensure you will stay in the home long enough to recoup costs. Even 0.5% can be worth it if you stay 10+ years.
What are typical refinance closing costs?
Usually 2-5% of the loan amount. On a $300K loan, expect $6,000-$15,000. Shop multiple lenders to find the best combination of rate and costs.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.