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Mortgage & Real Estate
Compare your existing mortgage with a refinance offer to estimate the monthly payment change, total interest impact, and how long it takes closing costs to pay back.
Monthly savings
$247
Refinancing can be worthwhile if the new rate is materially lower, you plan to stay in the home long enough to recover closing costs, or you want to change the loan term to pay the balance off faster or reduce monthly cash flow.
Current vs. new monthly payment
Compare your existing payment with the refinance offer. Updates as you change the inputs.
For a $260,000 balance with 240 months left at 6.75%, refinanced to 5.5% over a new 30-year term with $4,000 closing costs:
| Item | Amount |
|---|---|
| Current monthly payment | ~$1,976 |
| New monthly payment | ~$1,476 |
| Monthly savings | ~$500 |
| Break-even (4,000 ÷ 500) | ~8 months |
If you plan to stay in the home longer than the break-even point, refinancing is likely to be worthwhile, though a new 30-year term can raise total interest even as the payment falls.
A refinance replaces your current mortgage with a new loan, usually to lower the rate, shorten the term, or change the payment structure. The savings depend on your remaining balance, closing costs, and new rate.
When the new rate is meaningfully lower or the loan term better matches your goals, and the savings outweigh closing costs.
No. It may lower the rate but extend the term, which can sometimes lead to a similar or even higher total cost.
Calculate the break-even point by dividing estimated closing costs by the monthly interest savings.
Not necessarily, but stronger credit and equity usually help you qualify for better refinance terms.
It can save interest if the payment remains affordable; otherwise a rate-and-term refinance may be more practical.