Find out if refinancing is right for you in a few simple steps.
Input your remaining loan balance, current interest rate, and number of years left on your loan.
Provide the new interest rate and loan term offered by your new lender.
Enter the estimated closing costs for the refinance (typically 2–5% of the loan amount).
Check your new monthly payment, monthly savings, break-even period, and estimated lifetime savings.
The break-even point is the number of months it takes for your monthly savings to cover the closing costs of refinancing. If you plan to stay in your home longer than this period, refinancing is generally worthwhile.
Refinancing typically makes sense when you can secure a lower interest rate, reduce your monthly payment, and plan to keep the loan long enough to surpass the break-even point.
Closing costs include lender fees, appraisal fees, title insurance, and other expenses associated with getting a new loan. They typically range from 2% to 5% of the loan amount.
Lifetime savings are calculated by subtracting the total cost of the new loan (all new payments plus closing costs) from the total cost of continuing with the current loan over its remaining term.
Not always. If the new rate is higher, or if you do not stay long enough to recover the closing costs, refinancing may cost more. Always compare total costs over your expected time horizon.
Determine if refinancing your mortgage or loan makes financial sense by calculating your break-even point and lifetime savings.
The Refinance Calculator helps you decide whether refinancing your mortgage or loan is worthwhile. Enter your current loan balance, interest rates, terms, and closing costs to see your new monthly payment, how many months it takes to break even on closing costs, and how much you save over the life of the loan.
Find out if refinancing is right for you in a few simple steps.