Refinance Calculator & Break-Even
Refinancing is not just a lower payment. It costs money to do, and a new 30-year term restarts the clock. This shows the monthly savings, the month you break even, and what happens to total interest either way.
Your mortgage today
Monthly change
−$320
Saving $320 a month ($3,836 a year).
Break-even
1 yr 9 mo
Recovering $6,500 of upfront cost.
New payment
$2,707
Now: $3,027
New loan amount
$420,000
Current balance $420,000
What this says
Refinancing from 7.50% to 6.69% lowers the payment by $320 a month. You recover the $6,500 of cost in 1 yr 9 mo, so this works if you keep the loan longer than that.
Over the next 27 years — the period both loans share — the refinance saves $15,496 of interest. Over each loan's full term the difference is −$6,117, because a new 30-year term replaces 27 remaining years.
Assumptions behind these numbers
- Your current loan is modeled as a fixed payment amortizing over the remaining years you entered.
- Escrowed taxes and insurance are excluded from both sides because they do not change with a refinance.
- Property taxes, homeowners insurance, HOA dues and maintenance are estimates you can change; actual amounts vary by property and municipality.
- Home appreciation, rent growth and investment returns are assumptions, not predictions. Real markets move up and down.
- Mortgage insurance figures are estimates. Actual pricing depends on the lender, the mortgage insurer and your credit profile.
- Results ignore income tax effects, such as any deduction for mortgage interest or property taxes.
- Interest rates shown are averages or your own entries, not a rate quote or lock.
Keep going
Educational only: The calculators and information on this website are for educational and illustrative purposes only. Results are estimates based on the information and assumptions entered and are not a loan offer, commitment to lend, financial advice or guarantee of eligibility, rates, costs or savings. Actual loan terms, rates, fees, mortgage insurance and qualification requirements vary by borrower, property, lender and loan program. Speak with a licensed mortgage professional for personalized information.