You want to lower your monthly payment
See how much a lower rate or longer term changes your payment, and what it costs you in lifetime interest.
Refinance, decided.
Calculate whether refinancing your mortgage is worth it.
Use expert-reviewed refinance calculators to estimate your new payment, compare closing costs, and find your breakeven point — before you apply.
Reviewed by mortgage professionals
Methodology and assumptions disclosed
Updated regularly
Editorially independent
Choose your refinance starting point
Most homeowners don't need every calculator. Start with the question you're actually trying to answer.
Tool
Refinance Calculator
Estimate your new monthly payment, savings, and breakeven point against your current mortgage.
Calculate savings ToolBreakeven Calculator
Find out exactly how many months it takes for refinance savings to cover your closing costs.
See breakeven ToolClosing Costs Calculator
Itemize the fees a typical refinance involves and see what's negotiable versus fixed.
Itemize costs GuideCash-Out Refinance
When tapping home equity makes sense, how it's priced, and when a HELOC is the better tool.
Read guideBuilt for the decisions homeowners actually make
Refinancing has very different math depending on what you're trying to accomplish. Find your situation.
You're considering a cash-out refinance
Estimate how tapping equity changes your balance, your rate, and your total cost — and compare against a HELOC.
You want to know if it's worth the fees
Calculate the exact month closing costs are recovered, and whether you'll stay in the home long enough to get there.
You're a first-time refinancer
Walk through the full refinance process, what to expect, what to bring, and what the major decisions are.
What you can calculate here
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01
Monthly payment change
How your principal-and-interest payment shifts under a new rate, term, or balance.
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02
Breakeven point
The month your cumulative savings cover closing costs — usually 18 to 36 months.
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03
Closing costs impact
How upfront costs compress or extend the breakeven window, with itemized estimates.
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04
Long-term interest savings
The lifetime cost difference between staying with your current loan and refinancing.
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05
Cash-out scenario impact
How pulling equity changes your balance, monthly payment, and total interest paid.
How our refinance calculations work
Transparent math, declared assumptions, and the limits of what the calculator can tell you.
Formula
Standard amortization: M = P · (r·(1+r)n) / ((1+r)n−1), where P is principal, r is monthly rate, n is months. Applied to both the current and the proposed loan.
Assumptions
Fixed-rate, fully amortized loan. Closing costs paid out of pocket, not rolled into the new balance. Property taxes, hazard insurance, PMI, and HOA dues excluded — these don't change from refinancing alone.
Rate context
We don't pull live rates. For market context, the standard U.S. reference is the weekly Freddie Mac Primary Mortgage Market Survey.
Limitations
Not applicable to adjustable-rate mortgages after reset, loans with prepayment penalties, negative-amortization or interest-only products, or refinances combined with second-lien subordination. Tax effects are excluded.
Review
Edited by Artem Rodionov, Founder. Pending review by a licensed mortgage professional — content involving lender-specific advice is held until that reviewer is in place. See editorial policy.
See real refinance scenarios
Three common situations, each with the exact inputs and the exact outcome. Run your own version in the calculator.
Trading 7.5% for 6.25%
- Current balance
- $325,000
- Current rate · term
- 7.50% · 27 yrs left
- New rate · term
- 6.25% · 30 yrs
- Closing costs
- $4,500
Monthly savings
$341 / mo
Breakeven
Month 14
Recovers closing costs inside 14 months. Worth it if staying past month 14.
30-year to 15-year
- Current balance
- $260,000
- Current rate · term
- 6.50% · 25 yrs left
- New rate · term
- 5.75% · 15 yrs
- Closing costs
- $5,200
Payment change
+$404 / mo
Lifetime interest
−$138,000
Higher payment, dramatically lower lifetime interest. Trade cash flow for total cost.
Pulling $60K for renovation
- Current balance
- $250,000
- New balance
- $310,000
- New rate · term
- 6.50% · 30 yrs
- Closing costs
- $7,800
Cash to borrower
$60,000
Payment change
+$379 / mo
Compare against a HELOC before deciding — HELOCs avoid resetting your first-lien rate.
Refinance learning hub
Six of the most useful guides for the decisions surrounding a refinance.
When to refinance
The six conditions that should all be true before you pull the trigger.
FHA streamline refinance
Skip the appraisal and most income docs — when this product applies, and when it doesn't.
VA IRRRL
The Interest Rate Reduction Refinance Loan for veterans, with its specific eligibility rules.
PMI removal
Using a refinance to drop private mortgage insurance — and whether it's actually the cheaper path.
Appraisal process
What lenders look at, when appraisal waivers apply, and how to prepare.
Closing costs
Itemized breakdown of typical refinance fees, with what's negotiable and what isn't.
Meet our review team
Who writes and reviews what you read here, and which seats we haven't filled yet.
Artem Rodionov
Founder & Editor
Sets the editorial direction, commissions guides, and edits every calculator page for clarity and consistency. Does not provide licensed mortgage advice — that role is open.
Author profileLicensed mortgage reviewer
Position open
We are actively recruiting an NMLS-licensed mortgage professional to review every page that involves lender-specific guidance. Until that seat is filled, those pages stay unpublished.
Get in touchCFP for adjacent topics
Position open
A Certified Financial Planner to review content on the trade-offs between refinancing and other uses of capital — savings, investing, debt payoff.
Get in touchWe list open seats publicly because pretending we have credentials we don't would erode the only thing this site sells: trust.
Editorial transparency
Five short documents that explain how we work and how we make decisions.
- Editorial PolicySourcing, review, and corrections process
- How We Make MoneyWhere revenue comes from, and what it doesn't influence
- AI DisclosureWhere and how we use AI in drafting and editing
- ContactDirect line for corrections, tips, and partnerships
- About UsWho runs HearthLoan and why this site exists
Questions homeowners ask before refinancing
Is refinancing worth it?
Refinancing is worth it when your new rate is at least 0.75% below your current rate and you plan to stay in the home long enough to recoup closing costs — typically 24 to 36 months. The calculator above shows your specific breakeven point based on your numbers.
How much does refinancing cost?
Refinance closing costs typically run 2% to 5% of the loan amount, or roughly $5,000 to $15,000 on a $300,000 refinance. Major line items are lender origination (0.5–1%), title insurance ($500–$2,500), appraisal ($400–$700), and prepaid escrow. "No closing cost" refis don't eliminate costs — they roll them into the rate or the balance.
How do you calculate breakeven?
We calculate breakeven by dividing total closing costs by monthly savings. If your closing costs are $4,500 and your monthly savings are $250, breakeven is 18 months — the point where cumulative savings cover the cost of refinancing. We use cash-flow breakeven, which is the more conservative of the two common methods.
Does this calculator include closing costs?
Yes. The calculator accepts your closing costs as an input and uses them to compute the breakeven month. It assumes closing costs are paid out of pocket, not rolled into the loan balance. To model a rolled-in scenario, add closing costs to the new balance instead.
When should I not refinance?
Avoid refinancing when you plan to sell within the breakeven window, when you are in the final five years of your current loan (most of your payment is already principal), when your credit has recently been damaged, or when the rate improvement is below the 0.75% threshold that typically justifies closing costs.
How fresh are your rate assumptions?
Our calculator does not pull live rate data — you enter the rate you have been quoted. For market context, we cite the weekly Freddie Mac Primary Mortgage Market Survey (PMMS), which is the U.S. standard reference for average mortgage rates. The page you're on is reviewed at least quarterly.
Ready to see whether refinancing makes financial sense for your situation?
Start with the calculator, or compare the most common refinance scenarios.