Refinance Calculator

When Does Refinancing Make Sense?

Refinancing replaces your current mortgage with a new loan — ideally at a lower rate. The core question: how long will it take your monthly savings to recoup the closing costs? This is your break-even point.

• Strong case: Rate drops 0.75%+ and break-even is under 2 years
• Consider carefully: Break-even is 3–5 years — only beneficial if you plan to stay
• Avoid: Break-even exceeds 7 years or you plan to sell before then

What Are Refinance Closing Costs?

Refinancing isn't free. Closing costs typically run 2–4% of your loan balance. Common costs include:

• Origination fee: 0.5–1% of loan amount
• Appraisal: $400–$700 (confirms current home value)
• Title search & insurance: $500–$1,500
• Recording & government fees: $200–$500

Some lenders offer "no-closing-cost" refinances that roll these costs into your rate. This eliminates upfront payment but increases your long-term interest expense.