Question 1

How It Works

Accepted Answer

Enter your current loan details (balance, rate, remaining term) and the proposed refinance terms (new rate, term, closing costs). The calculator compares your current and new monthly payments, shows total interest savings, factors in closing costs, and calculates your break-even point — the number of months until the savings outweigh the upfront costs.

Question 2

When does it make sense to refinance?

Accepted Answer

Refinancing typically makes sense when you can lower your rate by at least 0.5-1%, plan to stay in the home or keep the loan long enough to pass the break-even point on closing costs, and your credit score has improved since you originated the loan. Also consider refinancing to switch from an adjustable-rate to a fixed-rate mortgage for payment stability.

Question 3

What are typical refinance closing costs?

Accepted Answer

Closing costs typically range from 2-5% of the loan amount and may include appraisal fees, title insurance, origination fees, and application fees. On a $250,000 refinance, expect $5,000-$12,500 in closing costs. Some lenders offer 'no-closing-cost' refinancing but compensate with a slightly higher rate.

Question 4

Should I refinance to a shorter loan term?

Accepted Answer

Refinancing from a 30-year to a 15-year mortgage significantly increases monthly payments but can save tens of thousands in interest. It makes sense if you can comfortably afford the higher payment without straining your budget. If the higher payment is tight, refinancing to a lower rate on the same term still provides meaningful savings.

Refinance Calculator

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Matthew Collins