Refinance Calculator

How to check whether refinancing pays off

1. Enter your current balance, rate and years left.
2. Enter the new rate, new term and closing costs.
3. See the monthly savings, the months until the costs are recovered and the total saved.

Frequently asked questions

Why can a lower payment still cost more?

A longer new term spreads the balance over more years, so you may pay more interest in total even at a lower rate. Compare the total saved, not only the monthly savings.

What is the break-even point?

The closing costs divided by the monthly savings: the number of months until the savings pay back what refinancing cost.

When is refinancing worth it?

When you expect to keep the loan well past the break-even point and the total saved is positive.