Refinance Calculator — Monthly Savings & Break-Even Point

Frequently Asked Questions

When does refinancing make sense?

Refinancing typically makes sense when the new rate is at least 0.5–1% lower than your current rate and you plan to stay in the home long enough to recoup the closing costs. The break-even period shown in the results is the clearest way to evaluate this.

What are typical refinance closing costs?

Refinance closing costs usually run 2–5% of the loan amount, covering origination fees, appraisal, title search, title insurance, and prepaid items. On a $300,000 loan that's $6,000–15,000. Some lenders offer "no-closing-cost" refis, but they typically roll the costs into a higher rate or the loan balance.

Does refinancing restart my 30-year clock?

It resets the amortisation schedule, which means your early payments are again weighted toward interest rather than principal. If you've been paying for 10 years on a 30-year mortgage and refinance into another 30-year loan, you now have 30 more years of payments. Refinancing into a 20- or 15-year term avoids this and often comes with a lower rate.

What is a cash-out refinance?

A cash-out refinance replaces your existing mortgage with a larger loan, and you receive the difference in cash. It's commonly used to fund home improvements, pay off high-interest debt, or invest in other property. The trade-off is a higher loan balance and monthly payment.

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