Refinance Calculator

Your Current Mortgage

Current Loan Balance ($)

Current Interest Rate (%)

Years Remaining on Current Loan

Your New Loan Estimate

New Interest Rate (%)

New Loan Term

Estimated Closing Costs ($)

Cash-Out Amount ($) optional

Estimated New Monthly Payment

Current Monthly Payment

Monthly Savings

Lifetime Savings vs. Current Loan

Break-Even on Closing Costs

These are estimates based on the figures you entered. Actual savings depend on lender terms, fees, and your full financial profile. Fundslender is a matching service, not a lender, and cannot guarantee any specific rate or savings.

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Should I refinance my mortgage

Refinancing replaces your existing mortgage with a new one, typically to lower your interest rate, reduce your monthly payment, or change your loan term. Whether it makes sense depends on how much rates have moved, how long you plan to stay in the home, and what closing costs apply.

When refinancing tends to make sense

Your rate drops meaningfully. A reduction of 0.75% or more often produces enough monthly savings to justify closing costs within a reasonable timeframe.
You plan to stay long enough. If you break even on closing costs in 24 months and plan to stay 10 years, refinancing is likely worth it.
You want a shorter term. Refinancing from 30 years to 15 years increases monthly payments but significantly reduces total interest paid. Use our mortgage payment calculator to compare both scenarios side by side.
You need to access equity. A cash-out refinance lets you borrow against your home equity for home improvements, debt payoff, or other needs.

If you are unsure about your overall readiness, the home buying readiness quiz can help you assess where you stand financially.

How a refinance calculator works

A mortgage refinance calculator compares two loan scenarios side by side. It takes your current loan balance, interest rate, and remaining term, then computes a new monthly payment based on the rate and term you are considering. The difference between the two monthly payments is your estimated monthly savings.

The calculator also estimates total interest paid under each scenario and factors in closing costs to show the break-even point. If you reach break-even in 18 months and plan to stay in the home for 7 years, the math clearly favors refinancing. If break-even takes 6 years and you plan to move in 3, the costs may not be worth it.

For a cash-out refinance, the calculator adjusts the new loan balance upward to include the cash amount, then recalculates the payment and total cost so you see the full picture.

When refinancing can lower your monthly payment

Three scenarios can reduce your monthly mortgage payment through refinancing:

Lower interest rate. This is the most direct path. A lower rate reduces the interest portion of each payment, lowering your total monthly obligation without extending your timeline.
Longer loan term. Extending from 15 years to 30 years spreads the remaining balance over more payments, reducing the monthly amount. However, you will pay more total interest over the life of the loan. Check the lifetime savings figure in the calculator carefully before choosing this path.
Lower remaining balance. If you have paid down a significant portion of your loan, refinancing the lower balance at any rate produces a smaller payment than your original mortgage.

Use the mortgage affordability calculator to check how a new payment fits your overall budget, or browse the loan guides to learn more about how lenders evaluate refinance applications.

What to consider before refinancing

A refinance payment calculator provides useful estimates, but the final decision involves several factors beyond the numbers.

Closing costs

Refinancing typically costs between 2% and 5% of the loan amount in fees. On a $300,000 loan that could mean $6,000 to $15,000 upfront. These costs must be recovered through monthly savings before the refinance becomes financially beneficial.

Break-even timeline

Divide your total closing costs by your estimated monthly savings to find your break-even point. If you plan to stay in the home beyond that point, refinancing is likely a net positive. If you expect to sell or move before then, consider whether the upfront cost justifies the savings.

Cash-out goals and total debt

A cash-out refinance adds to your loan balance. Before choosing this route, consider whether the purpose of the cash-out justifies increasing your mortgage. Using cash-out proceeds to pay off high-interest debt can save money overall if you manage the new mortgage responsibly and do not accumulate new high-interest balances.

Long-term interest cost

A lower monthly payment does not always mean a better financial outcome. If refinancing resets your loan from year 10 to a fresh 30-year term, you may pay considerably more total interest even at a lower rate. The lifetime savings figure in this refinance savings calculator accounts for this difference so you see the full picture, not just the monthly change.

Frequently Asked Questions

What does the break-even point mean in a refinance?

The break-even point is the number of months it takes for your cumulative monthly savings to cover the upfront closing costs of the new loan. If you plan to stay in the home beyond the break-even point, refinancing is likely to save you money overall. If you sell or pay off the loan before then, the upfront costs may outweigh the savings.

Should I refinance my mortgage if rates drop slightly?

Whether refinancing makes sense depends on the size of the rate reduction, how long you plan to stay in the home, and the closing costs involved. Even a modest rate reduction can produce meaningful savings over a 15- or 30-year term. Use this mortgage refinance calculator to run the numbers for your specific situation before making a decision.

How does a cash-out refinance affect my payment?

A cash-out refinance replaces your current mortgage with a larger one. The difference between the new loan amount and your existing balance is paid to you in cash. Because your new loan balance is higher, your monthly payment may increase even if you secure a lower interest rate. This calculator includes a cash-out field so you can estimate the full impact.

Will refinancing always lower my monthly payment?

Not always. A lower rate generally reduces your payment if the term stays the same. Refinancing into a shorter term may raise your monthly payment even though total interest cost decreases. A cash-out refinance also increases the loan balance, which can raise your payment regardless of the rate change.

Does Fundslender offer refinancing?

Fundslender is a loan matching service, not a lender. We connect users with third-party lenders who may offer refinance options. We do not make lending decisions, set loan terms, or guarantee approval or specific rates.