Refinance savings calculator

Break-even is the number that matters

Divide your total refinance costs by the monthly savings to get your break-even month. If you will stay in the home longer than that, the refinance pays for itself. If not, it is money spent for nothing.

We also show lifetime interest, because moving from 27 remaining years back to a new 30 year loan can lower the payment while raising total cost. Choosing a 25 or 20 year term often keeps both in your favor.

Costs to include

Include lender fees, appraisal, title insurance, recording and any discount points. Do not include prepaid interest and escrow deposits, which you would pay anyway. Many refinances qualify for an appraisal waiver, saving about $650.

When a HELOC is smarter

If your goal is cash and your current rate is well below today's rates, a HELOC may be cheaper than a cash-out refinance because it leaves your first mortgage untouched.