Refinance Calculator

Refinancing means replacing your current loan with a new one — usually to get a lower rate, a different term, or both. This calculator compares your current payment against a new one so you can see the real monthly difference.

It's not just about the rate

A lower rate is the obvious win, but refinancing into a longer term can lower your monthly payment even at a similar rate — while increasing total interest paid over time, since you're extending how long you carry the balance. Compare both the monthly savings and the total cost before deciding.

Refinancing costs money upfront

Closing costs, appraisal fees, and other refinancing expenses typically run a few thousand dollars, which is why refinancing usually only makes sense if you'll stay in the loan long enough for the monthly savings to outweigh those upfront costs — often calculated as a "break-even" period, commonly 2-4 years.

Frequently asked questions

How much does the rate need to drop to make refinancing worth it?

There's no universal threshold — it depends on your loan balance, remaining term, and how long you plan to stay in the loan. Even a 0.5-1% drop can be worth it on a large, long-term loan; run the numbers with your specific closing costs factored in.

Does refinancing reset my loan progress?

Yes, in the sense that a new loan starts its own amortization schedule from year one — which is part of why extending the term on a refinance can increase total interest paid even at a lower rate, since you're restarting the front-loaded-interest curve.