Refinance Calculator
Compare your current mortgage with a new loan to see if refinancing makes financial sense for you.
Current Loan
New Loan
Recommendation
Calculating...
Monthly Payment Comparison
Total Cost Comparison
Break-Even Analysis
After this point, refinancing saves you money every month.
Lifetime Summary
💡 When to Refinance?
- • Rate drops by at least 0.5% – 1%
- • You plan to stay in the home past break-even
- • Your credit score has improved significantly
- • You want to switch from ARM to fixed rate
- • You need cash for home improvements
Quick Answer
Refinancing a $250,000 mortgage balance from 8% to 6.5% interest with $5,000 in closing costs results in a monthly savings of approximately $220, with a break-even point of about 23 months. Adjust the calculator above with your own loan details for a personalized estimate.
What is Mortgage Refinancing?
Also searched as "refinance home loan," "refinance calculator," or "cash out refinance," this tool helps you compare your current mortgage against a new loan - whether you're lowering your rate or pulling cash from your home equity.
Mortgage refinancing means replacing your current home loan with a new one, typically to secure a lower interest rate, reduce your monthly payment, shorten or extend your loan term, or access your home equity through a cash-out refinance. Refinancing involves closing costs, so it only makes financial sense when the long-term savings outweigh the upfront expense.
How to Use the Refinance Calculator Step by Step
- Enter your current loan balance — the remaining principal on your existing mortgage.
- Enter your current interest rate and remaining term — found on your latest mortgage statement.
- Enter the new interest rate — from a refinance quote or current market rates.
- Select your new loan term — you can keep the same term or choose shorter/longer.
- Add estimated closing costs — typically 2% to 5% of your loan amount.
- Review your break-even point — see how many months it takes for savings to cover closing costs, plus your lifetime interest savings.
Current Refinance Rates in USA 2026
As of July 2026, refinance rates closely track purchase mortgage rates, with 30-year fixed refinance rates averaging 6.5% to 7.5% and 15-year fixed refinance rates averaging 5.75% to 6.75%. Rates depend heavily on your credit score, loan-to-value ratio, and whether you choose a rate-and-term or cash-out refinance.
| Refinance Type | Average Rate (2026) | Typical Closing Costs |
|---|---|---|
| Rate-and-Term Refinance | 6.5% – 7.5% | 2% – 4% |
| Cash-Out Refinance | 6.75% – 7.75% | 3% – 5% |
| 15-Year Refinance | 5.75% – 6.75% | 2% – 4% |
Rates are illustrative averages based on national market conditions and may vary by lender, credit profile, and equity position.
When Does Refinancing Make Sense?
- Rate Drop of 0.5% – 1% or More: The bigger the rate reduction, the faster you reach your break-even point.
- Long-Term Homeownership Plans: If you plan to stay in your home past the break-even point, refinancing saves money every month afterward.
- Improved Credit Score: If your score has risen significantly since your original loan, you may now qualify for much better rates.
- Switching from ARM to Fixed: Refinancing out of an adjustable-rate mortgage removes uncertainty from future rate increases.
- Need for Cash: A cash-out refinance can fund home renovations, debt consolidation, or major expenses using your home equity.
Refinance Calculator FAQs
What is the break-even point in refinancing?
The break-even point is the number of months it takes for your monthly savings from refinancing to equal your total closing costs. For example, if closing costs are $5,000 and you save $200 per month, your break-even point is 25 months — after that, refinancing puts money in your pocket every month.
How much does it cost to refinance a mortgage?
Refinancing typically costs 2% to 5% of your loan amount in closing costs, covering appraisal fees, origination fees, title insurance, and recording fees. For a $300,000 loan, expect to pay $6,000 to $15,000, though some lenders offer no-closing-cost options with a slightly higher rate.
Can I refinance if I have less than 20% equity?
Yes, you can refinance with less than 20% equity, but you may need to pay PMI on a conventional refinance if your loan-to-value ratio exceeds 80%. FHA streamline refinances have more flexible equity requirements for existing FHA borrowers.
How many times can I refinance my mortgage?
There is no legal limit to how many times you can refinance, but each refinance involves new closing costs, so it should only be done when the financial benefit clearly outweighs the expense. Most lenders require a minimum seasoning period, often 6 months, between refinances.
Rate-and-Term vs Cash-Out Refinance
| Rate-and-Term | Cash-Out | |
|---|---|---|
| Purpose | Lower rate or change term | Access home equity as cash |
| Loan Amount | Same as current balance | Higher than current balance |
| Typical Rate | Lower | Slightly higher |
| Best For | Reducing monthly payment | Renovations, debt payoff |
Disclaimer: This calculator provides estimates only and does not constitute financial or lending advice. Actual rates, costs, and savings depend on your lender, credit profile, and current equity position. Consult a licensed mortgage professional for personalized refinancing advice.