Refinance Calculator
Mortgage Refinance Calculator
Is a new loan worth the cost of getting it? This refinance calculator compares your current mortgage with a proposed rate and term, counts the closing costs, and shows your new payment, monthly savings and the month when those savings finally cover what you spent to refinance.
Interactive tool
Calculate your refinance savings
A lower rate looks appealing on its own, but the real question is how long it takes to earn back the upfront expense. Fill in both loans below to find out.
Refinance snapshot
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Estimated monthly change
- Current principal & interest —
- New principal & interest —
- Break-even point —
- Remaining interest, current loan —
- Total interest, new loan —
Estimates for planning only, not a loan offer, rate quote or commitment to lend. Actual terms depend on credit, income, property, program guidelines and underwriting. Resetting to a longer term can lower the payment while raising total interest.
How to use it
Running a refinance comparison
Pull your latest statement
Your mortgage statement shows the current principal balance and interest rate. Count the months left on the loan for the remaining term.
Describe the new loan
Enter a test rate and the term you'd choose. A new term can be shorter, the same or longer than what you have left.
Estimate closing costs
Add the expected fees to refinance. If you don't have a figure yet, try a few amounts to see how the break-even point shifts.
Compare the outputs
Weigh the monthly savings against the break-even month and ask how long you realistically plan to keep the home.
Inputs explained
The six numbers behind the estimate
| Input | Why it matters |
|---|---|
| Current balance | The amount the new loan would pay off; it becomes the starting point for your new principal. |
| Current rate | Used with the balance and remaining term to rebuild your existing principal and interest payment. |
| Remaining term | How much time is left on your loan, which affects both your current payment and how a new term compares. |
| New rate | The rate you want to test. Actual pricing depends on credit, equity, loan type and market conditions. |
| New term | The length of the replacement loan. Extending it can lower the payment while adding years of interest. |
| Closing costs | Fees paid to complete the refinance. Divided by the monthly savings, they determine your break-even point. |
Understanding results
New payment, monthly savings and break-even explained
Monthly savings is the difference between your current principal and interest payment and the estimated new one. The break-even point is closing costs divided by those savings, expressed in months. If you expect to sell or refinance again before that month arrives, the refinance would likely cost more than it saves.
The comparison covers principal and interest only. Property taxes, homeowners insurance and mortgage insurance carry over or change independently, and they vary by property and program. Resetting to a fresh 30-year term can shrink the payment yet raise total interest, so look beyond the monthly figure.
Results are estimates for planning, not a loan offer or rate commitment. Cash-out goals, FHA streamline and VA IRRRL options follow their own rules, which are covered on our refinancing solutions page. Eligibility always depends on underwriting and program guidelines.
Get a refinance quote built on your real loan
Share your current statement with Sterling Smith for a personalized rate, verified closing costs and an honest answer about whether refinancing makes sense now. Getting started involves no hard credit pull.
Request a Refinance ReviewAnswers
Refinance calculator FAQs
What is a good break-even period for a refinance?
There's no universal cutoff. The break-even month simply needs to arrive well before you expect to sell or move. A homeowner planning to stay many years can accept a longer payback than someone likely to relocate soon.
Why might my total interest go up even though my payment drops?
Starting a new long term spreads the balance over more months, so you pay interest for longer. Choosing a term that matches or shortens your remaining years helps avoid that.
Can I roll closing costs into the new loan?
Often, yes, if you have enough equity and the program allows it. Financing the costs raises your balance slightly, so enter the higher loan amount to see the effect on savings.
Does this calculator handle cash-out refinancing?
It models a straightforward rate-and-term change. For a cash-out scenario, enter the larger new balance as your starting point, or use the loan comparison tool to weigh options side by side.
Should I compare refinancing with making extra payments?
It's a smart check. Sometimes adding principal to your existing loan saves more than a refinance once fees are counted. Run both through this page and the extra payment calculator.
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