Refinance Break-Even Calculator
Find out when refinancing your mortgage will start saving you money, and whether it's worth the closing costs.
Break-Even Point
23 months
That's about 1.9 years to recoup closing costs
Monthly Payment Comparison
| Current Monthly Payment | $2,063.44 |
| New Monthly Payment | $1,798.65 |
| Monthly Savings | +$264.79 |
Total Cost Comparison
| Current Total Interest | $368,556 |
| New Total Interest | $347,515 |
| Interest Saved | $21,042 |
| Current Total Cost (remaining) | $668,556 |
| New Total Cost (incl. closing) | $653,515 |
| Net Savings | $15,042 |
Recommendation
Refinancing makes financial sense if you plan to stay in your home for at least 23 months (1.9 years) after refinancing. Over the full loan term, you could save a total of $15,042 compared to keeping your current mortgage.
Refinancing Tips
- ✓ A general rule: refinancing is worth it when you can reduce your rate by at least 0.5–1%.
- ✓ Ask lenders about "no-closing-cost" refinance options — they have a slightly higher rate but no upfront fees.
- ✓ A shorter loan term (15 years) builds equity faster and saves substantially on total interest.
- ✓ Shop at least 3 lenders and compare Loan Estimates — fees can vary by thousands.
- ✓ Consider a cash-out refinance only if you have a clear plan for the funds (like high-value home improvements).
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Frequently Asked Questions
What are typical closing costs for a refinance?
Closing costs for a refinance typically range from 2% to 5% of the loan amount. This includes appraisal fees, title insurance, origination fees, and other lender charges. On a $300,000 loan, expect $6,000 to $15,000.
How long does a refinance take?
Most refinances take 30 to 45 days from application to closing. Rate locks typically last 30 to 60 days, so make sure your lock period covers the expected timeline.
Does refinancing hurt my credit score?
A refinance results in a hard credit inquiry (a small, temporary dip) and closes your old loan. Your score may drop 5–10 points initially but typically recovers within a few months of consistent payments on the new loan.
Should I refinance to a 15-year or 30-year term?
A 15-year term means higher monthly payments but dramatically less interest over the life of the loan. A 30-year term lowers your monthly payment, which can improve cash flow. Choose based on your financial goals and monthly budget.