Mortgage Refinance Break-Even Calculator
Discover if refinancing your mortgage will save you money after factoring in closing costs, new interest rates, and loan tenure changes.
Current vs. New Loan Terms
Current Mortgage
Proposed New Mortgage
Refinance Analysis
Frequently Asked Questions
What is the mortgage refinance break-even point?
The break-even point is the exact number of months it takes for your monthly interest savings to exceed the upfront closing costs and fees of the new loan. For example, if refinancing costs $3,000 and saves $150/month, your break-even point is 20 months.
When does refinancing make financial sense?
Refinancing makes strong financial sense if you plan to stay in the home well past your break-even month, and if you can lower your interest rate by 0.75% to 1.5% or more without extending your remaining loan term.
Should I reset to a 30-year term when refinancing?
Avoid resetting to a 30-year term if you are already 5–10 years into your existing loan. Instead, choose a 20-year or 15-year term, or make voluntary extra prepayments on the new loan so you don't erase previous equity gains.