Should you refinance? Compare your current mortgage to a new loan — see your monthly savings, the change in total interest, and exactly how many months it takes to break even on closing costs. No signup, instant results.
How do you calculate a refinance break-even point? Break-even months = closing costs ÷ monthly savings, where monthly savings is your current payment minus the new payment. If you'll stay in the home longer than the break-even point, refinancing typically pays off. This tool computes both payments with the standard mortgage formula and shows the break-even time plus the lifetime-interest difference.
It's how long it takes for your monthly savings to recoup the closing costs of the new loan: closing costs divided by monthly savings. If you'll keep the home past that point, refinancing usually makes sense.
Yes. Resetting to a new 30-year term at a lower rate can lower the monthly payment but stretch out the loan, raising total interest. The "lifetime interest difference" line shows this — a negative number means you'd pay more interest overall.
Discount points, escrow/insurance changes, PMI, and tax effects. Treat the result as a first-pass estimate, then get a lender's loan estimate for exact figures.
When your break-even is comfortably shorter than how long you plan to stay, and ideally when total interest also drops (or the cash-flow relief is worth a modest interest increase).