Refinance calculator
See what a refinance would save each month, when it pays for itself, and what it’s worth over the years you’ll actually keep the loan.
These calculators are for illustration only and aren’t an offer of credit or a loan estimate. They estimate principal and interest only; taxes, insurance and mortgage insurance aren’t included. By refinancing an existing loan, your total finance charges may be higher over the life of the loan.
How this refinance calculator works
It compares your current loan with the new one three ways:
- Monthly savings is your current principal-and-interest payment minus the new one.
- Break-even is the month when the refinance has paid for itself. Instead of just dividing closing costs by monthly savings, it also counts how fast each loan pays down, because restarting a 30-year term means more of each payment goes to interest at first.
- Net savings adds up everything you’d pay on each loan until the year you plan to sell or pay off, plus the balance you’d still owe, so you can see the real difference.
When refinancing tends to make sense
The Consumer Financial Protection Bureau suggests weighing how long it takes your monthly savings to cover the cost of refinancing, and notes that if you plan to move within a few years you may not get there. A common rule of thumb is to look for a break-even within about two years. Read When should you refinance? for the full checklist.
Sources: CFPB, Your home loan toolkit; CFPB, Should I refinance?
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Frequently asked questions
What counts as closing costs on a refinance?
Lender fees, appraisal, title insurance, recording fees and taxes, and any discount points. Freddie Mac says refinance closing costs typically run 3% to 6% of the loan amount. Prepaid interest and escrow deposits aren’t really costs of the refinance, since you’d pay or get them back either way.
Should I add closing costs to the new loan?
Rolling costs in means less cash at closing but a larger balance and more interest over time. Tick the box in the calculator to see both ways.
Why does the calculator say I never break even even though my payment drops?
If you restart a long term, more of each early payment goes to interest, so your balance falls more slowly. The calculator counts that, which can push the break-even out or past the time you plan to keep the loan.
Go Direct Lenders, LLC DBA Veterans Direct | NMLS ID 1028986 | Equal Housing Opportunity. Not affiliated with the Department of Veterans Affairs or any government agency. By refinancing an existing loan, the consumer’s finance charges may be higher over the life of the loan.