Mortgage Refinance Calculator
About Mortgage Refinance Calculator
Refinancing your mortgage can be a smart move, but only if the numbers work in your favor. The general rule of thumb is that refinancing makes sense if you can lower your rate by at least 1% and plan to stay in the home long enough to recoup the closing costs. But rules of thumb are just starting points — the real answer depends on your specific loan balance, remaining term, and how much those closing costs actually run.
This calculator does the heavy lifting by comparing your current payment against the proposed refinance payment, then calculating exactly how many months it will take to break even on closing costs. If you are planning to move before that break-even date, refinancing probably is not worth it. If you are staying put for the long haul, the savings can be substantial — especially in the current rate environment where even a 1% drop can save tens of thousands over the life of the loan.