See your monthly savings and break-even in seconds
Current Mortgage
New Loan Terms
Typical closing costs are 2–5% of the loan amount.
Refinancing looks worthwhile
You recoup closing costs in 1 yr 6 mos and save $39,202 in lifetime interest.
Monthly Payment Comparison
Current Payment
$2,227.70
7.25% · 28 yrs left
New Payment
$1,970.30
6.25% · 30 yrs
Monthly Savings
$257.41
per month
Break-Even & Lifetime Comparison
Refinance Tips
Wondering if it is worth refinancing your mortgage? Our free refinance calculator compares your current loan against a new one side by side. Enter your remaining balance, current interest rate, and new loan terms to instantly see your new monthly payment, how much you save each month, when you break even on closing costs, and how much total interest you save over the life of the loan.
Break-even = Closing Costs ÷ Monthly Savings. For example, $4,500 in closing costs and $150/month in savings gives a 30-month (2.5-year) break-even. If you stay in your home beyond that point, refinancing saves you money.
Not always. Resetting to a longer term (e.g., from 20 years remaining to a new 30-year loan) can lower your monthly payment but increase the total interest you pay. Compare the net lifetime savings, not just the monthly savings.
Closing costs usually run 2–5% of the loan amount and cover appraisal, title insurance, origination fees, and prepaid items. On a $300,000 loan that is roughly $6,000–$15,000. Some lenders offer no-closing-cost refinances that roll fees into a slightly higher rate.
A common rule of thumb is that refinancing makes sense when you can reduce your interest rate by at least 0.5–1%, your break-even period is shorter than how long you plan to stay in the home, and the net lifetime savings is positive after accounting for all closing costs.