What this decision involves
Refinancing should be evaluated against the time you expect to keep the loan or home. Payment savings alone can be misleading when closing costs, points, or a restarted term are included.
How to use the calculator
The calculator compares amortizing payments and interest, adds entered costs and points, and estimates the month when payment savings offset those costs. It also shows a horizon benefit using the planned time in the home.
Important limitations
The screen does not model every mortgage feature or personal consideration. Review the official Loan Estimate, compare offers, and ask a qualified professional about taxes, penalties, cash-out risk, and term changes.
Planning information only. ToolVerse results are estimates and do not constitute financial, tax, legal, lending, insurance, credit, or government advice. Calculator results are independent of compensation.
Frequently asked questions
What is refinance break-even?
It is the approximate month when cumulative payment savings offset refinance costs.
Why can a new 30-year term cost more?
Restarting a longer term can extend interest even when the rate and payment are lower.
Should I refinance based only on payment?
No. Compare total interest, costs, time in the home, and risks—not just payment.