See your new payment, monthly savings, break-even point, and lifetime interest impact before you refinance.
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.
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.
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.
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.