Snowballr provides financial education, not investment advice. Verify any advisor on FINRA BrokerCheck.
Free · Break-even · Lifetime savings

Refinance calculator

See whether refinancing makes sense. Calculate the monthly payment drop, break-even point on closing costs, and total lifetime interest saved at a new rate.

Refinance comparison checklist · CFPB Loan Estimate comparison guidance
Compare total cost, term, and expected time in the home
A lower payment alone does not show whether a refinance saves money: the new loan may change the term, fees, points, and total interest.
Use written Loan Estimates and your expected holding period; this calculator is an estimate, not a lender offer.

Compare the complete loan offers

  • Compare the interest rate, APR, points, lender fees, and cash due at closing in written Loan Estimates.
  • Check the new term and total interest; a lower payment can come from extending repayment rather than lowering total cost.
  • Estimate how long you expect to keep the loan and compare that period with the costs and payment difference.
  • For cash-out or a change from adjustable to fixed, compare the new loan's risks and costs with other available choices.

Simple break-even estimate

Simple break-even months = upfront refinance costs / monthly payment reduction

This is a screening estimate only. Compare total costs over your expected time in the loan, including points, term changes, escrow and prepaid items, and any costs financed into the new balance.

CFPB guide to comparing Loan Estimates

Use your actual loan terms

Enter your current balance and remaining term alongside the proposed rate, new term, and fees. The calculator compares the inputs you provide; confirm them against current Loan Estimates before deciding.

Refinance Calculator FAQ

What rate drop justifies refinancing?

There is no universal rate-drop threshold. Compare the written offers, costs, new term, payment, and total interest over the time you expect to keep the loan.

What does a refinance cost?

Costs vary by lender, loan, location, points, and services. Review the Loan Estimate's closing-cost and cash-to-close sections, and compare offers using the same loan amount and term.

Refinance vs HELOC for cash?

Compare the fees, rates, repayment terms, lien position, and payment risks for both offers. A HELOC may have a variable rate; a cash-out refinance replaces the existing first mortgage. The lower-cost choice depends on your actual terms and plans.

Will refinancing restart my mortgage term?

A new loan has the term selected for that offer. Compare its payoff date and total interest with your existing schedule; ask lenders about terms that better match your planned payoff date.

How does refinancing affect mortgage-interest taxes?

Tax treatment depends on the debt, how proceeds are used, current law, and your filing situation. Review IRS Publication 936 or consult a qualified tax professional before relying on a deduction.

Can I refinance more than once?

It may be possible, but eligibility, waiting periods, costs, and lender requirements vary. Compare each new offer with the remaining costs and term of your current loan.

Related calculators

Mortgage calculator
Calculate new payment.
Mortgage payoff calculator
Extra payment alternative.
Amortization calculator
Full schedule comparison.
Home loan calculator
Purchase financing.

Methodology and editorial standards

Each calculator uses its own inputs and method. Review the labels, units and assumption notes shown with the result. Costs, taxes, fees, benefits and other factors are not modeled unless the page or calculator explicitly says they are. A fixed-rate projection is a scenario, not a forecast or personalized recommendation.

The editorial standards explain how Snowballr reviews calculators and sources. The sources index links to references used across the site. To report an error or suggest a correction, use the contact page.