Finance guide
When Does Refinancing Make Sense?
Compare current loan vs proposed refinance and find the break-even timeline for closing costs.
Quick answer: Refinancing may be preferable when savings recover closing costs before your expected move or loan reset horizon.
Intent: when should i refinance my mortgage
How to run the numbers
- Enter your current balance, rate, and remaining term.
- Input new rate, term, and closing costs.
- Compare break-even month with how long you expect to keep the loan.
Common mistakes
- Focusing only on payment and not total interest can be misleading.
- Resetting to a new 30-year term may increase lifetime interest.
- Ignoring lender fees and points can overstate savings.
Calculators to open now
Open primary calculatorPrimary
Refinance Break-Even
Compare current vs new mortgage payment and estimate break-even timing.
Finance / Refi / Equity
Mortgage Payment
Monthly P&I, full payment estimate, and amortization summary for homeowners.
Cash-Out Refi
Estimate new loan amount, monthly P&I, net cash received, and 5-year refinance cost impact.
Amortization Schedule
Build a monthly amortization path with optional extra principal and exportable schedule data.
Related guides
How to Read an Amortization Schedule
Understand principal vs interest over time and use amortization outputs to plan prepayments.
Should You Buy Mortgage Points?
Estimate whether buying points can recover upfront cost within your expected ownership horizon.
When Does PMI Drop Off?
Estimate PMI drop-off timing and total PMI paid with optional extra principal assumptions.
HELOC vs Cash-Out Refi: What Changes the Cost?
Compare HELOC and cash-out refinance structures, payments, and break-even dynamics using shared assumptions.
FAQs
If payment drops, is refinance always better?
No. Lower monthly payment can come from a longer term, which may raise total interest over time.
How long should I plan to stay for refinance to work?
A practical rule is to stay past break-even, with an extra buffer for uncertain timelines.
Do rates need to drop by 1% to refinance?
Not necessarily. The decision depends on balance, fees, term changes, and your hold period.
This calculator provides planning estimates for educational purposes only. Verify all assumptions with licensed professionals before making financial, legal, tax, insurance, or construction decisions.
Want a sequence instead of a single tool? Open Start Here: Refinancing.