Refinance Calculator

Refinancing pays off when monthly savings recover the closing costs before you sell or refinance again. Divide total closing costs (typically 2%–5% of the loan, often $4,000–$10,000) by monthly payment savings to get the break-even in months. A common rule is that a rate drop of 0.75%–1% or more makes the math work, but the exact answer depends on closing costs and how long you plan to stay.

A "no-closing-cost" refinance does not erase the costs - it either rolls them into the loan balance or accepts a slightly higher rate (typically 0.125%–0.25%) so the lender absorbs them. This can be a smart choice if you plan to move within a few years, since you avoid out-of-pocket fees. Over a long horizon, the higher rate usually costs more than paying closing costs upfront.

Yes - a refinance typically starts a brand-new loan, often back to 30 years. That can lower payments dramatically but extends total interest paid. To avoid that, refinance into a shorter term (e.g., from 25 years remaining into a new 20- or 15-year loan), or keep paying the old monthly amount on the new lower-rate loan, which payoffs years early.

A refinance triggers a hard credit inquiry and adds a new account, typically dropping scores 5–15 points temporarily. Multiple mortgage inquiries within a 14- to 45-day window count as one for scoring purposes, so shopping rates with several lenders is safe. Scores usually recover within a few months as you make on-time payments on the new loan.