Should you refinance? Find out in 30 seconds.
Enter your loan details to see your new monthly payment, the change in total interest, and exactly when you break even on closing costs — the number that decides whether a refinance is worth it.
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The break-even point, explained
Refinancing replaces your existing mortgage with a new one — ideally at a lower rate. But refinancing isn't free: closing costs typically run 2%–5% of the loan amount for the appraisal, title work, origination, and recording fees.
The break-even point is the number of months it takes for your monthly savings to repay those costs. Save $250 a month against $6,000 in closing costs and you break even in 24 months. Stay in the home past that point and you're ahead; sell or refinance again before it, and the refinance cost you money.
This calculator goes one step further than the simple formula: it also compares total interest across both loans, so you can see when a lower monthly payment quietly hides a longer, more expensive loan. That distinction — payment vs. cost — is the difference between a refinance that helps you and one that only looks like it does. For the full method, read how to calculate your break-even point.
Plain-English refinance guides
Is Refinancing Worth It? A Simple Way to Decide
The five questions that actually determine whether a refinance saves you money — and the one number most people forget to check.
Read the guide →How to Calculate Your Refinance Break-Even Point
The single most important refinance number, explained with a real example you can follow step by step.
Read the guide →Refinance Closing Costs Explained: What You'll Actually Pay
A line-by-line breakdown of refinance fees, what's negotiable, and how “no-closing-cost” loans really work.
Read the guide →Rate-and-Term vs. Cash-Out Refinance: Which One Do You Need?
The two refinance types work very differently — and lenders price them differently, too.
Read the guide →Frequently asked questions
How much does it cost to refinance a mortgage?
Most homeowners pay between 2% and 5% of the loan balance in closing costs. On a $300,000 loan that's roughly $6,000 to $15,000, covering appraisal, title work, origination, and recording fees. “No-closing-cost” refinances shift those costs into a higher rate or a larger balance rather than eliminating them.
Is it worth refinancing for a 1% rate drop?
It depends on your balance and timeline, not the percentage. A 1% drop on a large balance can save hundreds per month; the same drop on a small balance may never recover the closing costs before you move. The break-even point — closing costs divided by monthly savings — is the number that answers this for your specific loan.
Will refinancing restart my loan?
Refinancing into a new 30-year term resets the clock, which lowers the payment but can increase total interest, especially if you were years into your current loan. If protecting your payoff date matters, compare a 15- or 20-year refinance — those terms also carry lower rates.
Does checking refinance rates hurt my credit score?
Pre-qualification tools use a soft credit pull, which does not affect your score. A hard pull happens only when you formally apply, and credit scoring models count multiple mortgage inquiries within a single shopping window as one inquiry — so comparing several lenders costs you almost nothing.
What credit score do I need to refinance?
Conventional refinances generally require a 620 minimum, but pricing improves at score tiers up through 760+. If you're just below a tier boundary, paying credit card balances down before applying can improve your rate for the life of the loan.
How long does a refinance take?
Typically 30 to 45 days from application to closing: rate shopping and application, appraisal, underwriting, then a mandatory three-business-day review of your Closing Disclosure before signing.