Refinance Calculator — Should You Refinance? 2026

🏠 Refinance Calculator — Should You Refinance? 2026

Free Refinance Calculator — Compare current vs new loan. Calculate monthly payment savings, break-even point, and total interest saved. Make smart refinancing decisions.

✓ Current Loan Details ✓ New Loan Terms ✓ Closing Costs ✓ Monthly Savings ✓ Break-Even ✓ Interest Saved ✓ Balance Chart

📋 Current Loan

💰 Remaining Loan Balance ($)

📈 Current Interest Rate (%)

6.5%

⏱️ Remaining Term (years)

20 years

🔄 New Loan (Refinance)

📈 New Interest Rate (%)

5.25%

⏱️ New Loan Term (years)

💰 Closing Costs ($)

Typical 2-5% of loan amount

📊 Monthly Payment Comparison

Current
$0

New
$0

Monthly Savings
$0

💰 Break-Even & Total Interest

Break-Even (months)
—

Total Interest Saved
$0

📉 Remaining Balance Over Time

📘 Refinance Guide — When and How to Refinance

🔹 What is Refinancing?

Refinancing replaces your current loan with a new one, usually to get a lower interest rate, reduce monthly payments, or shorten the loan term. It can save thousands in interest.

🔹 Break-Even Point

This is when your monthly savings equal your closing costs. Divide closing costs by monthly savings. If you plan to stay beyond break-even, refinancing makes sense.

🔹 When to Refinance

Typically refinance when rates drop 0.5-1% below your current rate. Also consider if your credit score has improved or you want to switch from adjustable to fixed rate.

🔹 Closing Costs Explained

Closing costs include appraisal, origination fees, title insurance, credit report, and recording fees. They typically range from 2-5% of the loan amount.

🔹 Shortening Loan Term

Refinancing from a 30-year to 15-year term increases monthly payment but saves tremendous interest. Our calculator shows both monthly payment and interest saved.

🔹 Cash-Out Refinance

This calculator focuses on rate-and-term refinancing. Cash-out refinance lets you borrow more than you owe, taking equity as cash for home improvements or debt consolidation.

❓ Frequently Asked Questions

What is the break-even point in refinancing? +

The break-even point is when your monthly savings equal your closing costs. It tells you how many months to recoup refinancing costs. If you plan to stay longer, refinancing makes financial sense.

When should I refinance my mortgage? +

Refinance when interest rates drop at least 0.5-1% below your current rate, and you plan to stay in the home beyond the break-even point. Also consider if your credit score has improved significantly.

What are typical closing costs for refinancing? +

Closing costs typically range from 2-5% of the loan amount. They include appraisal fee, origination fees, title insurance, credit report, and recording fees. Shop multiple lenders to compare.

Does refinancing reset my loan term? +

Yes, refinancing usually starts a new term. But you can choose a shorter term (e.g., 15-year instead of 30-year) to save more interest, though monthly payments may increase.

What is the difference between rate-and-term and cash-out refinance? +

Rate-and-term refinance changes interest rate or term without taking cash out. Cash-out refinance borrows more than you owe, giving you cash difference for home improvements or debt consolidation.

⭐ Pro tip: Use the break-even analysis. If break-even is less than how long you plan to stay, refinancing is likely a smart move. Also consider refinancing to a shorter term if you can afford higher payments — you'll save even more interest.