Refinance Calculator
Calculate if refinancing your mortgage makes sense. Compare monthly payments, total interest, and see your break-even point.
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.
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 -$87,616
7.00% (0.5% lower)
Break-even: 37 months
$166/mo
Save -$70,243
6.75% (0.75% lower)
Break-even: 29 months
$214/mo
Save -$53,044
6.50% (1% lower)
Break-even: 23 months
$261/mo
Save -$36,025
6.00% (1.5% lower)
Break-even: 17 months
$354/mo
Save -$2,545
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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Quick Answer
A refinance calculator compares your current loan to a new loan offer, showing monthly savings, total interest savings, and break-even point. At practicalwebtools.com, enter your current and new loan details to see if refinancing makes financial sense. Generally, refinancing is worthwhile if you can lower your rate by at least 0.5-1% and stay in the home past the break-even point.
Key Facts
- Refinancing replaces your current loan with a new loan at different terms
- Break-even point = closing costs ÷ monthly savings
- Typical closing costs: 2-5% of loan amount
- Refinancing makes sense if you stay past break-even and save overall
- Cash-out refinancing lets you tap home equity but increases debt
- Rate-and-term refinancing changes rate or term without taking cash
- Consider remaining loan term - refinancing 25 years into a 30-year mortgage extends debt
Frequently Asked Questions
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).
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.