Refinance calculator
Two numbers decide a refinance: how much the payment drops, and how long until the closing costs pay themselves back.
Your current loan
Original term
Used to work out what you still owe today.
The new loan
Rates move daily. A local lender quotes yours the day you ask.
New term
Frequently Asked Questions
When you will stay in the home past the breakeven month, which is closing costs divided by the monthly savings. If closing costs are $6,000 and the payment drops $250, you break even in 24 months. Selling before then means you paid for a refinance you never recovered.
Commonly 2% to 5% of the loan amount: origination, appraisal, title, and recording fees. Some lenders advertise no-cost refinances, which usually means the costs are financed into the balance or bought with a higher rate. Neither is free, so compare the loan estimates side by side.
It preserves your cash and makes the breakeven immediate on paper, but you finance those costs for the full term and pay interest on them. If you have the cash and plan to stay a long time, paying at closing usually costs less overall. The calculator shows both.
Yes, unless you choose a shorter term. Ten years into a 30-year loan, refinancing into a new 30-year term lowers the payment but stretches repayment to 40 years total. Refinancing into a 15 or 20-year term is how you get a lower rate without giving back the progress you have made.
A cash-out refinance replaces your loan with a larger one and pays you the difference from your equity. It is a real option for renovations or consolidating higher-interest debt, and it also raises your payment and puts your house behind the money. Talk it through with a local lender before deciding, and check your current value first.
No. We are not a lender or a mortgage broker. This tool checks the math, and local lender partners, who are paid advertisers rather than endorsements, handle the actual loan.
IMPORTANT. This comparison is a planning estimate only and is not a loan application, an offer of credit, or financial advice. Your use of it is subject to our Terms of Use. It assumes a fixed-rate loan and does not model escrow changes, prepayment penalties, or points. Ask a licensed lender for a loan estimate before deciding. BurlesonHomes.com is not a lender and provides information and advertising services. Information you submit through our forms may be shared with local mortgage professionals as described in our Privacy Policy.