Mortgage refinance calculator
Monthly change if you refinance
- Payment today
- $1,774
- Payment after refinancing
- $1,624
- Break-even on costs
- 2 yr 6 mo
- Total cost change over the term
- -$66,368
- Monthly change if you refinance
- -$150
A lower payment on a longer term can still cost more overall. Compare the total, not only the monthly figure — and only refinance if you will stay past the break-even point.
See what a refinance would actually cost you
Break-even maths only works with real rates and real closing costs. Get quotes before you decide.
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The short answer
A refinance is worth it when you stay in the home past the break-even point — closing costs divided by the monthly saving — and the total cost over the new term is not higher than staying put.
Today's best 30-year fixed mortgage rates
Rates shown are indicative national averages. Your own rate depends on credit score, down payment, loan size and location — a lender quote is the only number that binds.
| Loan type | Interest rate | APR | What it means |
|---|---|---|---|
| 30-year fixed | 6.42% | 6.55% | Lowest monthly payment, most interest paid overall |
| 20-year fixed | 6.18% | 6.33% | Middle ground on payment and total interest |
| 15-year fixed | 5.61% | 5.79% | Highest payment, far less interest |
| FHA 30-year fixed | 6.12% | 7.03% | Lower credit score bar, mortgage insurance applies |
| VA 30-year fixed | 5.98% | 6.24% | Eligible service members, usually no down payment |
| 5/1 ARM | 6.05% | 7.11% | Fixed for five years, then adjusts |
The number people miss
Resetting a 26-year balance onto a fresh 30-year term lowers the payment even at the same rate, because the debt is spread over more months. Always read the total cost line next to the monthly one.
When a refinance makes sense
The rate drop is large enough to break even well before you plan to move.
You are shortening the term rather than restarting it.
You are removing mortgage insurance now that equity has grown.
You are leaving an adjustable rate for a fixed one you can plan around.
The formula
New payment = (balance + costs) x r / (1 - (1 + r)^-n). Break-even months = closing costs / monthly saving.
FAQ
How to use the online mortgage calculator
Enter the home price, down payment, interest rate, and repayment term to estimate principal and interest. Mortgage amortization directs more of an early payment toward interest and more of a later payment toward principal. A complete housing estimate may also need property taxes, homeowners insurance, association dues, mortgage insurance, and escrow deposits, none of which are necessarily included in a basic calculator result.
A first time home buyer should compare the estimate with a lender’s official loan disclosure. A conventional loan may have different down-payment, credit, and mortgage-insurance requirements from government-backed financing. A debt to income ratio calculator can provide additional context by comparing required monthly debts with gross income. Preapproval is still conditional, and the final payment can change with the selected property, rate, taxes, insurance, and closing terms.
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