How to read your result
The number that matters is break-even — how many months it takes for the monthly savings to recover your closing costs.
If you'll stay in the home longer than the break-even, the refinance pays off. If you'll move before then, the closing costs cost you more than the rate savings — and you're better off keeping your current loan.
What this calculator doesn't account for
- Time value of money. A dollar saved today is worth slightly more than a dollar saved in year 10.
- Tax effects. Mortgage interest is sometimes tax-deductible. Your effective savings depend on your tax situation.
- Resetting the amortization clock. Refinancing into a fresh 30-year resets you to mostly paying interest in the early years. Look at total interest paid over the life of the loan, not just the monthly savings.
- Cash-out refinance dynamics. If you're pulling cash out, this calculator doesn't capture the value or cost of that cash usage.
The break-even number is the right first-cut number, but it's not the whole story. We'll walk you through the full picture for free.
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