When is refinancing worth it?
When you will keep the loan longer than the break-even time. A longer new loan can lower the payment and still cost more overall.
Refinance Calculator
Is a new loan worth it?
You save each month
$0- Payment now
- $0
- New payment
- $0
- Costs paid back in
- Never
- Saved over the whole loan
- $0
How it’s calculated
- Payment = rate × loan ÷ (1 − (1 + rate)^−months)
- Monthly savings = payment now − new payment
- Break-even = closing costs ÷ monthly savings
Example: Moving $300,000 from 7% with 28 years left to 6% over 30 years saves $240 a month, and $5,000 of costs pay back in 21 months.
About the Refinance Calculator
Your new payment, what you save each month, and how long the closing costs take to pay back.
How to use this tool
- Enter what you owe, your rate and the years left.
- Enter the new rate, length and closing costs.
- Check how long the costs take to pay back.