Mortgage Refinance Calculator

Refinancing typically makes sense when you can lower your rate by at least 0.5%–1%, you plan to stay in the home long enough to pass the break-even point, or you want to switch from an adjustable-rate to a fixed-rate mortgage. The break-even point is the number of months it takes for your monthly savings to recoup closing costs. If you plan to move before that, refinancing may not be worth it.

Refinance closing costs generally run 2%–5% of the loan amount and include application fees, appraisal, title search, title insurance, and origination fees. On a $250,000 loan, expect to pay $5,000–$12,500. Some lenders offer "no-closing-cost" refinances, but they typically roll the costs into a slightly higher interest rate.

Refinancing to a shorter term (e.g., 30 years down to 15) increases your monthly payment but dramatically reduces total interest. Keeping the same term length restarts the amortization clock, which may increase total interest paid even if the rate is lower. A good compromise is to refinance at a lower rate with the same remaining term so you stay on schedule to pay off the loan at the original date.

Refinancing causes a hard inquiry on your credit report, which can temporarily lower your score by 5–10 points. Closing your old mortgage and opening a new one also affects your credit mix and average account age. However, these impacts are usually minor and recover within a few months. Rate-shopping within a 14–45 day window counts as a single inquiry for scoring purposes.