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Refinance savings calculator
Compare your current loan with a new one and find the exact month your savings cover closing costs.
Monthly savings (principal and interest)
$336
Break-even
15 months
Strong case: you recover costs in about 1.3 years.
- New loan amount
- $380,000
- Lifetime difference
- Save $19,903
- Interest left, current
- $487,004
- Interest, new loan
- $462,301
Show as a table
| After | Net savings |
|---|---|
| Year 1 | -$765 |
| Year 2 | $3,269 |
| Year 3 | $7,304 |
| Year 4 | $11,338 |
| Year 5 | $15,373 |
| Year 6 | $19,407 |
| Year 7 | $23,442 |
| Year 8 | $27,476 |
| Year 9 | $31,511 |
| Year 10 | $35,545 |
Total interest from here
A lower payment can still cost more if the clock restartsCounting closing costs, this refinance saves $19,903 over the life of the loans.
- Current loan
- New loan
Estimates only. Principal and interest only; excludes taxes, insurance and escrow. Break-even is closing costs divided by the monthly saving. Sample math for illustration, not a loan offer.
Break-even is the number that matters
Divide your total refinance costs by the monthly savings to get your break-even month. If you will stay in the home longer than that, the refinance pays for itself. If not, it is money spent for nothing.
We also show lifetime interest, because moving from 27 remaining years back to a new 30 year loan can lower the payment while raising total cost. Choosing a 25 or 20 year term often keeps both in your favor.
Costs to include
Include lender fees, appraisal, title insurance, recording and any discount points. Do not include prepaid interest and escrow deposits, which you would pay anyway. Many refinances qualify for an appraisal waiver, saving about $650.
When a HELOC is smarter
If your goal is cash and your current rate is well below today's rates, a HELOC may be cheaper than a cash-out refinance because it leaves your first mortgage untouched.
Know your numbers before you shop
Pre-qualify in about 6 minutes with a soft credit check. No impact to your score and no obligation.
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