United States
US Mortgage Refinance Calculator
Compare current vs new loan and estimate break-even months.
Current payment
$2,528.27
New payment
$2,334.29
Monthly savings
$193.98
Break-even
31 months
US mortgage refinance guide
When refinancing makes sense
Refinancing replaces your existing loan with a new one — usually to lower the rate, change the term, or tap equity. The break-even point is when cumulative monthly savings exceed closing costs.
Rate drops of 0.75–1.0 percentage points often trigger refinance conversations, but break-even depends on your balance, remaining term, and how long you plan to stay in the home.
Costs to consider
Closing costs typically run 2–5% of the loan amount and include appraisal, title, origination, and recording fees. Some lenders offer no-closing-cost refis by baking fees into a higher rate.
Resetting to a new 30-year term lowers monthly payment but can increase total interest if you have already paid down the original loan for many years.
Frequently asked questions
- ?What is a good refinance break-even period?
- Many homeowners target break-even within 24–36 months. If you may move sooner, refinancing may not pay off even at a lower rate.
- ?Does a cash-out refinance work the same way?
- Cash-out increases your loan balance. Compare payment savings against the larger principal and new closing costs separately.