FREE HOME DECISION TOOL

Mortgage Refinance Break-Even Calculator

Compare current and proposed mortgage payments, closing costs, monthly savings, and the estimated time needed to reach refinance break-even.

Free to useGuided field explanationsYour inputs stay on your device

YOUR NUMBERS

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Current loan balanceThe principal still owed on your current mortgage.

Why it matters

Balance and rate determine the interest charge; a larger balance magnifies the effect of any rate change.

Current interest rateThe interest rate on your existing mortgage.

Why it matters

The gap between this rate and the proposed rate drives most of the potential refinance savings.

Years remainingTime left on your current amortization schedule.

years

Why it matters

Restarting with a longer term can lower payment while extending debt and increasing lifetime interest.

Current monthly taxes, insurance, MI & duesCurrent monthly taxes, insurance, mortgage insurance, association dues, and other property charges.

Why it matters

A refinance may change escrow or mortgage insurance even when the property stays the same.

Potential new rateThe proposed annual rate before comparing fees, points, and credits.

Why it matters

A lower rate reduces principal-and-interest, but only closing costs determine how soon savings become real.

New loan termThe repayment period for the replacement loan.

years

Why it matters

Extending the term may create payment relief without producing the best long-term cost.

Proposed new loan amountThe exact proposed refinance loan amount, including any financed costs or cash-out.

Why it matters

A new balance different from the current payoff changes payment, equity, and lifetime interest.

New monthly taxes, insurance, MI & duesExpected monthly non-principal-and-interest charges after refinancing.

Why it matters

Comparing complete payments prevents an escrow change from being mistaken for rate savings.

Estimated closing costsLender, title, appraisal, recording, and other refinance charges you expect to pay.

Why it matters

Costs divided by monthly savings determine the break-even period.

Years you expect to keep the new loanHow long you expect to keep the replacement loan before selling, paying it off, or refinancing again.

years

Why it matters

The expected retention period determines whether closing costs are recovered in time.

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CALCULATOR GUIDE

How to use the mortgage refinance break-even calculator

Use this calculator to compare the entered current loan with a proposed refinance. It estimates monthly payment change and how long potential savings could take to recover closing costs.

Key assumptions and limitations

Current and proposed rates, balances, terms, and non-principal costs are entered consistently.
Closing costs are recovered only through the modeled monthly savings.
The comparison does not model taxes, cash-out uses, opportunity cost, or every loan feature.

Common questions

What is refinance break-even?

It is the approximate time for modeled monthly savings to equal the entered closing costs.

Does a lower payment mean refinancing is best?

Not necessarily. A longer term, higher total interest, moving plans, fees, and cash-out choices can change the decision.

Educational estimates only. Verify important home, lending, insurance, tax, and legal decisions with the appropriate qualified professionals.

Mortgage Refinance Break-Even Calculator

Tell us what you know today.

How to use the mortgage refinance break-even calculator

Key assumptions and limitations

Common questions

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