Compare your current loan to a new rate and term to see your monthly savings and break-even point.
Estimates only — not financial advice. Verify with your lender/advisor.
A refinance calculator compares your current loan payment to a new payment at a different rate and term, then shows how much you save each month and how long it takes those savings to repay your closing costs.
It calculates your current monthly payment from your remaining balance and remaining term, then calculates a new monthly payment from the same balance at the new rate and new term. Monthly savings is the current payment minus the new payment. Results are estimates, not financial advice.
The break-even point is the number of months it takes for your monthly savings to repay the closing costs you pay upfront. It equals closing costs divided by monthly savings. If the new payment is not lower, there is no monthly savings and no break-even point.
Not always. Extending the term can lower the monthly payment while increasing total interest over the life of the loan. Compare the break-even point to how long you plan to keep the loan, and confirm all costs with your lender.