Enter your current loan and the refinance offer to see your new payment, monthly savings and breakeven point. The calculator shows both the simple breakeven and a fuller one that accounts for differences in the loan balance.
| Year | Old balance | New balance | Payments saved so far | Net position |
|---|
Runs entirely in your browser. Nothing is uploaded to any server.
Fees can outweigh a lower rate if you move soon.
Weigh a lower rate against higher closing costs.
Account for extending your loan term.
A lower interest rate cuts the interest part of every payment, but refinancing has closing costs: lender fees, appraisal, title and sometimes points. Until the monthly savings add up to those costs, you are behind.
Resetting to a new 30-year term lowers the payment but stretches the debt out. If you have 25 years left, a new 30-year loan adds 5 years of payments. The true breakeven and lifetime interest figures make that trade-off visible.
Lower rate or change the term.
Borrow extra against your equity.
Higher payment, much less interest.
Simple breakeven = closing costs / monthly payment savings. With $6,000 of costs and $300 a month saved, it takes 20 months.
A new loan with a longer term lowers the payment partly by repaying principal more slowly. The true breakeven adds the difference in remaining balances, so it only counts real savings.
Rolling them in avoids paying cash now but increases the balance and the interest you pay. The calculator handles both options.
Generally when you will keep the loan well past the breakeven point. If you may sell or refinance again before then, it can cost more than it saves.
No. It compares principal and interest only, since property tax and insurance do not change with a refinance.
More free tools from My Panda Toolbox.