Mortgage Refinance Calculator 2026
See your new monthly payment, how much you'd save, and how long it takes to break even on the closing costs.
How Mortgage Refinancing Works
Refinancing replaces your existing mortgage with a new one — ideally at a lower interest rate, a shorter term, or both. You pay closing costs (typically 2–5% of the loan) to do it, so the key question is whether the monthly savings outweigh those costs. The break-even point is how many months it takes for your savings to cover the closing costs; refinance only makes sense if you'll keep the home past it.
When Is Refinancing Worth It?
- Your new rate is meaningfully lower than your current rate (often cited as ~0.5–1%+).
- You'll stay in the home longer than the break-even period.
- You want to shorten the term (e.g. 30 → 15 years) to pay far less interest overall.
- You're switching from an adjustable-rate to a fixed-rate loan for stability.
Frequently Asked Questions
How much does it cost to refinance?
Closing costs are typically 2–5% of the loan amount — covering appraisal, origination, title and other fees. On a $300,000 loan that's roughly $6,000–$15,000, though some lenders offer "no-closing-cost" refinances in exchange for a higher rate.
What is a refinance break-even point?
It's the number of months it takes for your monthly savings to repay the closing costs. If costs are $4,000 and you save $400/month, you break even in 10 months. Refinancing pays off only if you keep the loan beyond that.
Does refinancing hurt my credit?
There's a small temporary dip from the hard inquiry and the new account, but it typically recovers within a few months. Rate-shopping within a short window usually counts as a single inquiry.
Should I refinance to a longer term?
A longer term lowers your monthly payment but can increase total interest, even at a lower rate. Compare the lifetime interest of both loans (including closing costs) before deciding.
📖 Read the guide
Should I refinance my mortgage?
Related Calculators
⚠️ Disclaimer: Results are estimates only and do not constitute financial, tax, or legal advice. Tax laws change frequently — always verify with official sources (IRS, HMRC) and consult a qualified professional before making decisions.
By using JoinCalc you agree to our Terms of Service and Privacy Policy