Refinance Calculator

Q: What is a good break-even point for refinancing?

There is no universal answer, but a break-even point under 24-36 months is generally considered favorable for most homeowners, since it recoups costs relatively quickly. A break-even point beyond 5 years deserves more careful consideration of how long you plan to stay in the home.

Q: Does refinancing always lower my monthly payment?

Not necessarily. Refinancing into a shorter loan term (such as 30 years remaining to a new 15-year loan) can increase your monthly payment even at a lower rate, while saving substantially on lifetime interest. The right comparison depends on your goals: lower payment, less lifetime interest, or accessing equity.

Refinance Calculator | Should You Refinance? | Todd Uzzell Mortgage

Your numbers

Current loan

Remaining balance

Current rate (%)

Years remaining

Current payment

New refinance loan

New rate (%)

New term (years)

Closing costs ($)

How long will you stay?

Years you plan to stay in the home

Break-even point

— months

Monthly savings

New payment

Current payment

Lifetime interest impact

Enter your numbers to see whether refinancing makes sense for your timeline.

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This calculator gives you a strong directional answer. A quick call with Todd gives you a real rate quote and exact closing costs based on your loan and credit profile.

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How the break-even point works

When you refinance, you pay closing costs upfront in exchange for a lower monthly payment, a shorter term, or both. Your break-even point is the number of months it takes for your monthly savings to add up to enough to cover those closing costs. The formula is simple: closing costs divided by monthly savings equals months to break even.

If you plan to stay in your home longer than your break-even point, refinancing typically pays off. If you might sell or refinance again before then, the upfront costs may outweigh the benefit — which is exactly what the "years you plan to stay" field above accounts for.

Watch out for term resets

Refinancing into a new 30-year loan can look like a big monthly win, even when the rate improvement is modest — because you're spreading the balance over a fresh 30 years instead of the years you'd already paid down. This can mean paying more in lifetime interest even at a lower rate. This calculator's lifetime interest comparison accounts for this, so a misleadingly low monthly payment doesn't look like a clear win if it actually costs more over time.

What's included in closing costs

Loan origination fees, typically a percentage of the loan amount
Appraisal fee to confirm current home value
Title insurance and escrow fees
Recording fees and other county/state charges
Discount points, if you choose to buy down your rate further

Total closing costs typically run 2-5% of your loan amount. Some lenders offer no-closing-cost refinances that roll the costs into your rate or loan balance instead of charging upfront — worth asking about if cash at closing is a concern.

How do I know if refinancing is worth it?

Compare your closing costs to your monthly savings to find your break-even point in months. If you plan to stay in the home longer than the break-even point, refinancing typically makes financial sense.

What is a good break-even point for refinancing?

A break-even point under 24-36 months is generally considered favorable for most homeowners. A break-even point beyond 5 years deserves more careful consideration of how long you plan to stay.

Does refinancing always lower my monthly payment?

Not necessarily. Refinancing into a shorter term can increase your monthly payment even at a lower rate, while saving substantially on lifetime interest. The right comparison depends on your goals.

What closing costs should I expect when refinancing?

Refinance closing costs typically run 2-5% of your loan amount, including origination, appraisal, title insurance, and recording fees. No-closing-cost options exist that roll costs into the rate or balance.