Mortgage refinance analysis
Compare refinance savings against closing costs before you reset your loan.
This refinance calculator helps you estimate monthly savings, break-even timing, and long-term cost so you can decide whether a lower rate actually improves your mortgage.
Useful for rate-and-term refinance decisions
Shows whether lower monthly payment comes with a longer interest timeline
Highlights break-even months so fees are not hand-waved away
Current monthly payment
$1,688.02
New monthly payment
$1,342.05
Monthly payment reduction
$345.96
Financing savings at horizon
$12,591.41
Savings across both loan lifetimes
$18,265.91
Current loan debt at horizon
$226,405.41
New loan debt at horizon
$229,571.83
Sustained financing-cost recovery
17 months
Model assumptions
Both loans start with the same balance. Annual interest is divided by 12; this is an interest rate, not APR. Payments occur at month end and stop at payoff; the final payment settles the balance. Closing costs are paid in cash. Financing cost is accrued interest plus cash fees, equivalent to payments plus remaining debt minus the starting balance. Recovery is the first whole month after which financing savings stay nonnegative through both payoffs; it is distinct from monthly payment reduction. The horizon may include a fractional month: debt accrues interest, but no installment is paid in that fraction. Fees are not financed. Include any modeled prepayment penalty in cash closing costs. Ongoing property taxes and insurance are excluded from this same-home comparison. No income-tax benefits are assumed.
