Current Mortgage
New Offer
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Current monthly payment$0
New monthly payment$0
Monthly savings$0
Break-even (months)0
Should You Refinance Your Mortgage?
This calculator compares your current mortgage payment to a new refinanced rate, factoring in closing costs, showing your break-even point.
Why Break-Even Matters Most
Closing costs typically run 2-5% of the loan. Break-even tells you how many months of savings it takes to recoup those costs. If you'll stay beyond that, refinancing likely makes sense.
Common Reasons to Refinance
- Lower rate: Reduces payment and total interest
- Shorter term: Pay off faster
- Cash-out: Borrow against equity
- Remove PMI: If home value increased
Frequently Asked Questions
What's a good break-even period?
Generally, breaking even within 2-3 years while planning to stay longer makes refinancing worthwhile.
Does this include all refinancing costs?
This uses a simplified closing cost figure; get a detailed quote from your lender for exact costs.
Is refinancing worth it for a small rate cut?
Depends on balance and timeline; small cuts can be worthwhile on large, long-held balances.