Old loan vs. new loan: monthly savings, when the closing costs pay for themselves, and what each path costs in total.
Typically 2–5% of the loan amount: origination, appraisal, title, recording.
Cost = payments made so far + what it would take to pay off the balance that day (plus closing costs on the refi path). The crossing point is the true break-even.
| Current loan | Refinance | |
|---|---|---|
| Monthly payment | ||
| Months left | ||
| Remaining interest | ||
| Closing costs | — | |
| Total remaining cost |
This refinance calculator lines up your current mortgage against a new one, showing the monthly payment difference, the break-even month where accumulated savings cover the closing costs, and the total interest each option costs from here to payoff.
It builds the remaining amortization of your current loan and a fresh amortization of the new one, then compares them. The monthly savings is the difference in payments; the break-even is the month when those accumulated savings finally cover your closing costs. Rolling the costs into the new loan avoids paying cash up front but adds to the balance, so you pay interest on them for the life of the loan.
Generally when the new rate is meaningfully lower and you will stay in the home past the break-even point, so the monthly savings outlast the closing costs.
It is the number of months it takes for your monthly savings to add up to the closing costs you paid. Sell or refinance again before then and you lose money on the deal.
A shorter term usually raises the monthly payment but slashes total interest. The calculator shows both so you can weigh cash flow against lifetime cost.
No. Resetting a 20-year-old loan back to 30 years lowers the payment but can raise total interest. Look at the break-even and the lifetime cost, not just the monthly number.
If you can afford the higher payment, a shorter term usually slashes total interest dramatically. The calculator shows both the monthly cost and the lifetime savings so you can decide.
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