Compare your current loan against a new one to see the monthly savings and exactly how many months it takes to recoup the closing costs — the break-even that decides whether refinancing is worth it.
How it works
- Enter details of your current mortgage balance, rate, and remaining years.
- Enter the proposed new rate, term, and expected closing costs.
- The engine amortizes both scenarios to pinpoint your exact break-even month.
Frequently asked questions
What is the break-even point?
The month when accumulated savings finally cover the closing costs. Past it you are ahead; before it you have lost money on the deal.
Does a lower rate always save money?
Not necessarily — resetting a 27-year loan to a fresh 30 years can raise total interest even at a lower rate. Watch the lifetime figure.
What closing costs should I expect?
Typically 2 to 5 percent of the loan: appraisal, title, origination, and recording fees.