Home Loan Planning
Refinance Savings Calculator
See your monthly savings, lifetime savings, and break-even point instantly
Current Loan
New Loan
See Your Refinance Savings
Enter your current and new loan details on the left to see monthly savings, lifetime savings, and break-even analysis.
When Does Refinancing Make Sense?
The classic rule of thumb is to refinance when you can lower your interest rate by at least 1%. But the real test is the break-even analysis — how many months of lower payments it takes to recoup your closing costs.
If you plan to stay in your home longer than the break-even period, refinancing almost always makes financial sense. If you're likely to move within 2–3 years, the savings may not outweigh the upfront costs.
Rate-and-term refinance lowers your rate or changes your term. Cash-out refinance replaces your loan with a larger one — useful for home improvements, but increases total interest paid.
Closing costs typically run 2–5% of the loan amount. On a $300,000 mortgage, that's $6,000–$15,000. Some lenders offer "no-closing-cost" refinances that roll costs into a slightly higher rate.
Shortening your term from 30 to 15 years dramatically reduces total interest — often by six figures — even if your monthly payment rises. Run both scenarios in this calculator to see the tradeoff.
If you have an adjustable-rate mortgage (ARM) nearing its adjustment period, refinancing to a fixed rate eliminates payment uncertainty — often worth it even without major monthly savings.
Refinance Calculator FAQ
How much does it cost to refinance a mortgage?
Refinancing closing costs typically range from 2–5% of the loan amount — averaging $3,000–$6,000 on a $200,000 mortgage. Costs include origination fees (0.5–1%), title search and insurance, appraisal ($300–$700), recording fees, and prepaid interest.
What credit score do I need to refinance?
Most conventional lenders require a 620+ credit score, though the best rates go to borrowers with 740+. FHA refinances allow scores as low as 580. A 20–40 point improvement can meaningfully lower your rate.
How long does it take to refinance?
The typical refinance takes 30–45 days from application to closing. Streamline refinances (FHA, VA, USDA) can close in 2–3 weeks. Having tax returns, pay stubs, and bank statements ready speeds the process.
Should I refinance to a 15-year or 30-year mortgage?
A 15-year mortgage has a 0.5–1% lower rate and saves a massive amount in total interest — but the monthly payment is 30–50% higher. A 30-year refinance maximizes monthly cash flow if you invest the difference.
What is the break-even point on a refinance?
The break-even point is when cumulative monthly savings equal total closing costs. For example: $5,000 closing costs ÷ $200/month savings = 25-month break-even. This calculator computes it automatically.
Can I refinance if I have an FHA loan?
Yes. FHA Streamline Refinance requires no new appraisal and limited documentation. Conventional refinances accept FHA borrowers with enough equity (typically 20%) to eliminate PMI — often a major savings opportunity.
Disclaimer: This calculator provides estimates only and is for educational purposes. Actual savings may vary based on your specific loan terms, credit profile, and market conditions. Consult with a licensed mortgage professional for personalized refinancing advice and accurate quotes.