Refinance Calculator
Compare your current mortgage to a refinance offer. See the new payment, total savings, and break-even point (months to recoup closing costs).
Inputs
Equity & mortgage insurance
About Refinance Calculator
When does refinancing make sense?
Rule of thumb: when you can drop your rate by 0.75-1% AND you plan to stay in the home longer than the break-even period. Also useful for switching from ARM to fixed, or shortening the term.
Can refinancing get rid of PMI?
Often, yes — and it is the saving people forget to count. Your current servicer prices PMI against the original purchase price, so a home that has appreciated does not help you until the balance itself reaches 78% of that old number. A refinance is underwritten against today's appraisal, so if the balance is under 80% of current value the new loan carries no mortgage insurance at all. Enter both values above and this page charges PMI on each loan separately, folds it into the monthly saving, and uses the PMI-inclusive figure for the break-even point. If both loans are still above 80% LTV it says so instead of quietly dropping the cost.
Watch the term reset
Refinancing from a 25-year remaining mortgage into a new 30-year stretches your overall loan to 30 years from now. You may save monthly but pay more total interest. Match the remaining term to keep total cost honest.
Closing costs vary widely
Typical: 2-5% of loan amount. Includes appraisal, title, origination, recording. "No-cost" refis usually bake costs into a higher rate — the savings are smaller per month but no upfront hit.