Mortgage Refinance
Compare a new mortgage payment with the current one after refinancing.
About Mortgage Refinance
Refinancing replaces the old loan with a new one at a different rate or term, changing the monthly payment. The break-even point shows how many months of savings it takes to recover closing costs. A lower payment only pays off if you keep the loan long enough to recover the closing costs you paid to get it.
Formula
Mortgage Refinance
Savings = current payment - refi payment; break even = closing costs / monthly savings
- break even
- months until closing costs are recovered
Worked example
With the default values below, Mortgage Refinance returns Refi Payment of $1,513.35. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Current balance
- 220,000
- Current rateaccepts 0–30 %
- 6.5 %
- Years leftminimum 1
- 20
- Refi rateaccepts 0–30 %
- 5.5 %
- New term yearsminimum 1
- 20
- Closing costs
- 6,000
Results
- Current Payment
- $1,640.26
- Refi Payment
- $1,513.35
- Monthly Savings
- $126.91
- Break Even Months
- 48
Step by step
- 1Values used
- 2Mortgage Refinance
- 3Refi Payment= 1,513.35
- 4Current Payment= 1,640.26
- 5Monthly Savings= 126.91
- 6Break Even Months= 48
Assumptions and limits
- The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Mortgage Refinance calculated?
Savings = current payment - refi payment; break even = closing costs / monthly savings Refinancing replaces the old loan with a new one at a different rate or term, changing the monthly payment. The break-even point shows how many months of savings it takes to recover closing costs.
Why does Mortgage Refinance matter?
A lower payment only pays off if you keep the loan long enough to recover the closing costs you paid to get it.
What values do I need to enter?
This calculator takes 6 inputs: Current balance, Current rate, Years left, Refi rate, New term years, Closing costs. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.