Compare your current mortgage with a new refinanced loan to see your monthly savings, total savings, and break-even point.
Current Loan
New Loan
When Should You Refinance?
Refinancing makes sense when the new interest rate is at least 0.5–1% lower than your current rate and you plan to stay in the home long enough to reach the break-even point.
Frequently Asked Questions
How much does refinancing cost?
Closing costs for refinancing typically range from 2–5% of the loan amount. Factor these costs into your break-even calculation.
Will refinancing hurt my credit score?
Refinancing involves a hard credit inquiry, which may temporarily lower your score by a few points. The impact is usually minor and short-lived.
How we calculate & our sources
We compare your current loan with a new one and compute the break-even point = closing costs ÷ monthly savings, so you can see when refinancing pays off. Method aligns with CFPB guidance. See Mortgage Calculator.
Estimates only; confirm terms with a lender. Not financial advice.