maratoolMortgage Refinance Calculator
Compare your current mortgage with a new rate and term. See monthly savings, the break-even month on closing costs, and lifetime savings.
What is Mortgage Refinance?
The Mortgage Refinance Calculator compares your current loan against a proposed one across the three numbers that decide the question: how much the payment drops each month, how many months until the savings repay the closing costs (break-even), and whether you save or lose money over the full life of the loan. That last figure is the one lenders rarely volunteer — a lower payment on a longer term often costs more in total.
How to use
- Enter your current balance, rate, and years remaining.
- Add the new rate, new term, and estimated closing costs.
- Read the verdict: monthly savings, break-even month, and lifetime savings after costs.
Frequently asked questions
When is refinancing worth it?
When you stay in the home past the break-even point — the month your accumulated payment savings exceed the closing costs. Before that point, refinancing loses money.
What is the break-even point on a refinance?
Closing costs divided by monthly savings. $5,000 in costs saving $280 a month breaks even in 18 months.
Why can a lower payment still cost more overall?
Resetting a loan you are 10 years into back to 30 years lowers the payment but restarts the interest-heavy early years, often raising total interest paid. The lifetime savings figure catches this.
What closing costs should I expect?
Typically 2–6% of the loan amount: origination fees, appraisal, title insurance, and prepaid taxes. Get a Loan Estimate from each lender to compare.
Last updated
Powered by maratool