Compare your current mortgage to today's refinance rates and see your exact break-even point and lifetime savings.
Loading today's average mortgage rates from Freddie Mac / FRED (Federal Reserve Bank of St. Louis)...
Refinance Analysis Results
Current Monthly Payment (P&I):$0.00
New Estimated Monthly Payment:$0.00
Monthly Cash Flow Savings:$0.00
Estimated Breakeven Period:0 Months
Total Overall Lifetime Savings:$0.00
Assumes you keep the new loan to the end of its full term. Extending back to a longer term can lower your monthly payment while increasing total cost — so compare the term lengths, not just the monthly number. The break-even period above is the most reliable "is it worth it?" figure.
New Loan Amortization Schedule
How your new refinanced loan pays down over time.
Refinance Lenders Matching Your Profile
📖 Understanding Mortgage Refinancing
Refinancing replaces your current mortgage with a new one — ideally at a lower rate, a different term, or to cash out equity. It is not free: you pay a new round of closing costs, so the decision comes down to one number: your break-even point.
Rate-and-term vs. cash-out refinancing
Rate-and-term refinance — you only change the rate and/or term, keeping the loan balance roughly the same. Goal: lower payment or pay off faster.
Cash-out refinance — you borrow more than you currently owe and pocket the difference, usually to pay off higher-interest debt (see our personal loan calculator) or fund renovations.
How the break-even math works
Divide your total closing costs by your monthly savings. That's the number of months it takes for the refinance to "pay for itself." If you plan to sell or move before that month, refinancing costs you more than it saves — no matter how attractive the new rate looks.
✅ Refinancing usually makes sense when
Rates have dropped meaningfully since you took out your loan, you plan to stay in the home past your break-even point, or you need to drop PMI after building enough equity.
❌ Refinancing usually doesn't make sense when
You're close to paying off your current loan, you plan to move soon, or the new rate is only marginally better than what you already have.
A common industry guideline: if your new rate isn't at least 0.75 percentage points lower than your current one, closing costs often eat most of the savings. The break-even above is the real test, but this is a fast gut-check.
⚡ Have an FHA or VA Loan? Ask About a Streamline / IRRRL
If your current mortgage is FHA or VA, the FHA Streamline and VA IRRRL programs let you drop your rate with no appraisal and, in most cases, no income or credit re-check — closing in as little as 2-3 weeks. Far less paperwork than a standard refinance, but only for lowering your rate (no cash-out).
🧾 Get a No-Closing-Cost Quote Too
Lenders can roll closing costs into a slightly higher rate instead of charging cash upfront. Compare both structures — the "no-cost" option can win if you won't stay in the home long enough to reach the break-even.
📐 Ask for a Custom Term to Avoid Resetting the Clock
Rolling 22 years left into a new 30-year loan lowers your payment but adds years of interest. Many lenders will write a custom term (say, 22 years) so you get the lower rate without stretching the payoff — ask instead of defaulting to 30.
💸 Don't Mistake the "Skipped Payment" for Savings
When a refinance closes you usually skip next month's payment and get your old escrow balance refunded weeks later. It feels like a windfall, but that money is rolled into your new balance or was always yours — judge the deal on the break-even, not the one-time cash bump.
⏳ Check Your Old Loan for a Prepayment Penalty
Some older loans charge a fee for paying off early. It's rare today but worth a 5-minute check before you refinance — a penalty changes your break-even math entirely.