CalcChief

Refinance Calculator

Enter your current loan details and new refinance terms to see exactly how much you'd save per month, when you'd break even on closing costs, and whether refinancing makes financial sense.

Refinance Calculator

Current Loan

$
%
years

New Loan

%
$

Typically 2–5% of loan balance

Current Payment

$2,069.18/mo

New Payment

$1,769.79/mo

Monthly Savings

+$299.38

Breakeven

17 mo

Current Total Interest

$340,753

New Total Interest

$357,125

Net Lifetime Savings

Cost $21,372

You'll recover closing costs in 17 months. Refinancing makes sense if you plan to stay in the home beyond that.

When Refinancing Makes Sense

✓
Rate drops 0.5%+ — Even half a point saves thousands over a 30-year loan.
✓
You'll stay past breakeven — If you'll move before recovering closing costs, don't refinance.
✓
Shorter term available — Refinancing from 30 to 15 years can save six figures in interest.
✗
Nearly paid off — Refinancing late in a loan restarts amortization and usually costs more overall.

Frequently Asked Questions

When should I refinance my mortgage?

Refinancing makes financial sense when: (1) you can lower your rate by at least 0.5–1%, (2) you plan to stay in the home past the breakeven point (typically 12–36 months), and (3) closing costs don't exceed the long-term savings. Use this calculator to find your personal breakeven.

How much does it cost to refinance?

Refinance closing costs typically run 2–5% of the loan balance. On a $300,000 loan, expect $6,000–$15,000. Some lenders offer no-closing-cost refinances by rolling fees into a slightly higher rate. Factor all costs into your breakeven calculation.

Does refinancing reset my loan term?

Yes — a new 30-year refinance resets your amortization clock, meaning more early payments go to interest rather than principal. If you've paid 10 years on a 30-year mortgage, refinancing to a new 30-year extends your payoff date by 10 years, even at a lower rate.

What credit score do I need to refinance?

Conventional refinances typically require 620+, with the best rates at 740+. FHA Streamline refinances allow lower scores. Cash-out refinances have stricter requirements. Check your credit score and get quotes from at least 3 lenders before committing.

Related tools:

Mortgage Calculator Affordability Calculator 30-Year vs 15-Year Mortgage