Refinance Calculator
Should you refinance your mortgage? Enter your current loan details and a potential new rate to see your monthly savings, break-even point, and total interest saved.
Current Loan
New Loan
Typically 2–5% of the loan amount
Extra cash from your equity (added to new loan)
🟡
Good refinance opportunity
Monthly Payment Comparison
Break-Even
24 mo
≈ 2.0 years
Interest Saved
$12,119
over life of new loan
Lifetime Cost Comparison
Interest: Current vs. New
Ready to see actual refinance rates from 20+ lenders? No hard credit pull.
Compare Refinance Rates→When Does Refinancing Make Sense?
Refinancing replaces your existing mortgage with a new loan — usually to get a lower interest rate, reduce your monthly payment, change your loan term, or tap into your home equity. Our free refinance calculator helps you weigh the costs against the savings.
Understanding the Break-Even Point
The break-even point is the number of months it takes for your monthly savings to recoup the closing costs of refinancing. If you plan to stay in your home past the break-even point, refinancing is likely worth it. A break-even under 24 months is generally considered excellent.
Rate-and-Term vs. Cash-Out Refinance
A rate-and-term refinance simply changes your interest rate and/or loan term without taking additional money out. A cash-out refinance lets you borrow more than you currently owe and receive the difference as cash — useful for home improvements, debt consolidation, or major expenses.
Common Refinancing Costs
- Origination fee: 0.5–1.5% of the loan amount
- Appraisal: $300–$600
- Title insurance & search: $500–$1,500
- Credit report fee: $30–$50
- Recording fees: $50–$250
- Total typical range: 2–5% of the loan amount
When to Consider Refinancing
- Rates have dropped 0.75%+ below your current rate
- Your credit score has improved significantly since your original mortgage
- You want to switch from an adjustable-rate (ARM) to a fixed-rate mortgage
- You want to shorten your loan term (e.g., 30-year to 15-year) to build equity faster
- You need to access home equity for a large expense (cash-out refi)
- You want to remove PMI after reaching 20%+ equity
Current Refinance Rate Trends (March 2026)
As of March 2026, 30-year fixed refinance rates are averaging 6.5%–7.0%, with 15-year rates in the 5.8%–6.3% range. Cash-out refinance rates are typically 0.125%–0.5% higher than rate-and-term refinances. Rates vary based on credit score, equity, and lender — comparing multiple offers is essential.
Frequently Asked Questions
How much does it cost to refinance a mortgage?
Refinancing typically costs 2–5% of the loan amount in closing costs. For a $280,000 loan, expect $5,600–$14,000. Some lenders offer "no-closing-cost" refinances where fees are rolled into a slightly higher rate.
How long does a refinance take?
A typical refinance takes 30–45 days from application to closing. Some lenders offer streamlined programs (like FHA Streamline or VA IRRRL) that can close in as little as 15–20 days.
Will refinancing hurt my credit score?
A refinance application triggers a hard credit inquiry, which may temporarily lower your score by 5–10 points. If you shop rates within a 14–45 day window, multiple inquiries are typically counted as one.
Can I refinance with bad credit?
It's possible but more challenging. FHA refinances accept scores as low as 580 (or 500 with 10% equity). Conventional refinances typically require 620+. A higher credit score means better rates and lower costs.
What is a break-even point in refinancing?
The break-even point is how long it takes for your monthly savings to offset the closing costs. For example, if you save $200/month and closing costs are $5,000, your break-even is 25 months. Refinancing makes sense if you plan to stay past this point.