🏡 Refinance Savings & Break-Even Analysis
Mortgage Refinance Calculator
Compare your current mortgage terms against a new loan to see monthly savings, interest reduction, and your exact break-even timeline.
1. Current Mortgage Details
$
%
yrs
2. New Refinance Terms
%
$
Sample Scenarios:
Rate Drop (6.5% → 5.25% 30yr)
Switch to 15-Yr Fixed (6.0% → 4.5%)
Jumbo Loan (7.0% → 5.5%)
Current Payment
$2,025.62
Interest: $307,686
New Payment
$1,656.61
Interest: $296,380
Monthly Savings
$369.01 / mo
$4,428.12 / year
Break-Even Point
12.2 Months
~1.0 Years
Overall Financial Verdict
Refinancing saves $369.01/month and pays for itself in 12.2 months.
How Refinance Break-Even Is Evaluated
Refinancing a mortgage replaces an existing loan with new terms and a new interest rate. To decide if refinancing is financially advantageous, consider the Break-Even Period:
Break-Even (Months) = Total Refinance Closing Costs / Monthly Payment Savings
If you plan to stay in the home longer than the break-even period, refinancing generates pure net financial savings. If you plan to move before the break-even month, closing costs will exceed your accumulated monthly savings.