Should you refinance? Compare current and new mortgage. Shows savings and break-even.
New monthly payment
$1,798.65
Current monthly payment
$2,112.58
Monthly savings
$313.93
Break-even point
12.7 months
Lifetime interest savings (approx)
$32,962.00
Should you refinance? Compare current and new mortgage. Shows savings and break-even.
A refinance calculator compares your current mortgage with a new one to show monthly savings, break-even point, and lifetime interest savings. Refinancing usually makes sense when the new rate is at least 0.75–1% below your current rate, assuming you plan to stay long enough to recoup closing costs.
Dropping from 7.25% to 6% saves about $249 a month. At $4K closing costs, you recoup those in 16 months — after that, pure savings.
Refinance when you can lower your rate by 0.75% or more AND you plan to stay in the home long enough to recoup closing costs through monthly savings. The break-even point is the key number.
The break-even point is closing costs divided by monthly savings — how many months until the refinance pays for itself. If you'll sell before then, refinancing loses money.
Yes — if you refinance into a new 30-year loan, you reset the clock. Many people refinance into a 15 or 20-year loan to avoid restarting the amortization.
Refinancing causes a hard credit pull that drops your score a few points temporarily. The impact is minor and typically recovers within months.