Refinance Calculator
Compare your current mortgage payment against a new refinance rate. See your monthly savings, updated payment, and how many months it takes to break even on closing costs.
Quick Answer
Refinancing a $320,000 balance from 7.5% to 6.2% on a 30-year term saves about $276/month, with a break-even point of roughly 14 months on $4,000 in closing costs.
Current Loan
New Refinance Loan
Estimated Monthly Savings
$276
Current Payment
$2,326
New Payment
$1,957
Break-Even
14 months
Lifetime Interest Savings
$41,200
Total Interest on New Loan
$384,500
New Loan Amortization Schedule
Yearly view| Year | Principal | Interest | Balance |
|---|
What Is a Refinance Calculator?
A refinance calculator compares your current mortgage against a new loan at a different interest rate or term, showing your monthly savings and the break-even point, meaning how long it takes for those savings to cover your closing costs. It's the fastest way to tell whether refinancing mortgage rates today actually make sense for your situation.
Mortgage Rates Today by Term
30 year fixed mortgage rates and 15 year mortgage rates below are illustrative averages to help you estimate potential refinance savings.
| Loan Type | Rate | APR |
|---|---|---|
| 30 Year Fixed Rate Mortgage | 6.50% | 6.68% |
| 15 Year Mortgage Rate | 5.85% | 6.02% |
| Refinance Rate (30 yr) | 6.65% | 6.84% |
Refinance mortgage rates are often slightly higher than purchase rates. Confirm current rates with your lender.
How to Use This Calculator
- Enter your current loan balance, rate and years remaining.
- Enter the new refinance rate you've been offered.
- Choose your new loan term.
- Add estimated closing costs for the refinance.
- Review your monthly savings and break-even timeline.
Frequently Asked Questions
Is it worth refinancing for a small rate drop?
It depends on your break-even point. If you plan to stay in the home longer than the months it takes to recover closing costs, even a small rate reduction can be worthwhile.
What credit score do I need to refinance?
Most lenders look for a credit score of 620 or higher for a conventional refinance, though requirements vary by loan type and lender.
How is this different from a cash-out refinance?
This calculator assumes a rate-and-term refinance with no extra cash withdrawn. For borrowing against your home equity, use our dedicated Cash-Out Refinance Calculator.