Keep the existing path
Use the current balance, rate and remaining years—not the original term.
Current loan over your time horizon
Payment relief versus the cost of refinancing
Refinance break-even calculator
A smaller payment can be useful without making a refinance cheaper overall. Compare fees, interest and remaining balances over the time you expect to keep the loan.
No contact details needed to calculate.
01 / Your numbers
Start with your assumptions.
Review the labels and units, calculate, then use the explanation below to understand the result.
Your comparison
See what your numbers show.
Complete the inputs, then choose Calculate. Loading an example fills the form so you can explore the assumptions before calculating.
02 / Read the result
A useful starting point.
Inputs changed. Calculate again to update these results.
See the calculation breakdown
02 / Behind the estimate
Follow the numbers.
Use your own inputs. Sample rates are assumptions, not current offers. This is a planning model, not a loan approval or a recommendation to borrow. This model assumes fixed rates, no cash out and no extra principal payments.
Model the replacement
Choose the new rate, term and fees, including whether fees are financed.
New loan + refinance fees
Compare the same period
Review payment relief, interest plus fees and the balances still owed.
Same horizon / both loan paths
Payment break-even is a cash-flow measure
It identifies when cumulative payment reduction covers fees paid upfront in this model. Financed fees do not disappear; they raise the new balance and its interest.
Read interest and fees alongside the balance
A lower payment can result from extending repayment. The interest-and-fees comparison and remaining balances help expose that tradeoff. A negative savings figure means greater modeled cost.
03 / The details that matter
What changes your result?
Keep the formula and the real-world review connected.
Remaining term
Replacing 20 years of payments with 30 can reduce the payment even without a large rate change.
Holding period
Upfront fees have less time to be recovered if you sell or refinance again soon.
Fee treatment
Paying upfront uses cash. Financing fees increases debt; either choice has a cost.
Scope of the quote
The model compares principal and interest. Taxes, insurance, escrow deposits and other costs require separate review.
04 / Questions answered
Refinance break-even questions, answered.
01
Set up the comparison
Start with the loan you have.
Should I enter the original term or the remaining term?
Enter the years remaining on your existing loan.
Use the current balance and rate. Entering the original term can understate the modeled payment and distort the comparison.
Return to the calculatorAre financed closing costs included?
Yes.
When you select financing, fees increase the new loan balance and its interest costs. Paying fees upfront changes the cash needed at closing. Both cases are compared over the same period.
Return to the calculator02
Understand break-even
Separate payment relief from total cost.
What does the savings figure measure?
It compares interest and refinance fees over your chosen period.
Remaining loan balances are shown separately; do not subtract their difference from the interest-and-fee savings. The separate payment comparison shows cash flow, which can improve simply because a loan is stretched over more years.
Return to the calculatorWhy can a lower payment still cost more?
A longer repayment term or added fees can outweigh the benefit of a lower rate.
Compare interest plus fees and remaining balances over the same horizon. Monthly savings alone do not show the full tradeoff.
Return to the calculatorHow does financing the fees affect break-even?
When all fees are financed, there is no upfront fee-recovery milestone.
The calculator shows “Fees financed; no upfront fee recovery.” Financed fees increase the new loan balance and its interest costs. Compare the separate interest-and-fee savings and remaining balances over your chosen period.
Return to the calculator03
Decide what to review
Bring the terms, not just the advertised rate.
Can I use this for a cash-out refinance?
This tool assumes no cash is taken out.
Use the refinance and home-equity guide and blended-payment calculator to explore additional borrowing, then compare the complete costs with a team member.
Return to the calculatorWhat if I plan to make extra principal payments?
This model assumes scheduled payments only.
Extra payments change interest and payoff timing. Request a separate comparison using your intended payment schedule.
Discuss your repayment plan05 / From estimate to conversation
Bring the questions behind the numbers.
Use these topics to prepare a focused review of your situation.
Existing mortgage
What we review: Balance, rate and remaining term.
Why it matters: The starting loan determines the comparison.
What to prepare
Current mortgage statement.
New terms
What we review: Rate, fees and financing of costs.
Why it matters: A low advertised rate may come with points or other fees.
What to prepare
A Loan Estimate or itemized quote.
Time horizon
What we review: When you may sell, repay or refinance again.
Why it matters: The cost advantage can change over time.
What to prepare
Expected ownership and repayment plans.
Payment versus cost
What we review: Cash-flow needs and long-term borrowing cost.
Why it matters: Those goals may point to different structures.
What to prepare
Your preferred monthly budget and extra-payment plans.
Have a general question before starting a scenario?
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Let’s make sense
of your situation.
You don’t need every answer before you reach out. Tell us what you’re planning, and our team can help you explore the next step.
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