Number Mortgage Refinance Calculator
Rates dropped? Compare your current loan against a refinance — monthly savings, how fast closing costs pay for themselves, and total interest over the remaining life.
Current loan
New loan
| Current monthly payment | $0 |
| Monthly savings | $0 |
| Break-even on closing costs | — |
| Interest saved over loan life | $0 |
How it works
Both payments use the amortization formula M = P × r(1+r)n / ((1+r)n − 1). Break-even = closing costs ÷ monthly savings — the point where savings repay the refinance cost. Lifetime interest compares total interest on the current remaining term vs the new term.
Frequently asked questions
When does refinancing make sense?
When you'll own the home past the break-even point and the numbers work: lower payment, lower lifetime interest, or both. If you might sell before break-even, the closing costs are money lost.
What is the 1% rule?
An old rule of thumb: refinance when the new rate is at least 1 percentage point below your current rate. With today's closing costs, run the break-even math instead — a 0.5% drop can pay off if costs are low.
Cash-out vs rate-and-term refinance?
Rate-and-term only changes your rate or term; cash-out borrows extra against equity for cash in hand. Cash-out rates run higher and reset your balance upward — use it for value-adding uses, not spending.
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