Should I Refinance My Mortgage?
Enter your current loan and the offer on the table — get a data-driven yes or no based on how long you plan to stay.
About this tool
A refinance makes financial sense when the accumulated monthly savings exceed closing costs before you sell or move. This calculator answers the question with your specific numbers — not a rule of thumb.
How to use it
Quick steps to get the most out of this utility.
- 1
Enter current loan
Balance, interest rate, and years remaining on your existing mortgage.
- 2
Enter the refi offer
New rate, term, and closing costs. Choose pay-upfront or roll-in.
- 3
Set your stay years
How long do you realistically plan to stay in this home?
- 4
Read the answer
See net savings for your horizon — green means yes, red means wait.
The Real Question Is Not the Rate — It Is the Horizon
Lenders and ads focus on the rate. But the rate only tells you how much you save per month. The decision requires one more number: how long will you keep the loan? Break-even months divided by 12 gives your break-even in years. If that number is less than your stay horizon, refinancing makes you money. If it exceeds your horizon, you leave before recovering the closing costs.
Common Mistakes in the Refinance Decision
- Focusing on lifetime interest savings while ignoring term reset — a 30-year refi can cost more lifetime interest than the remaining 20 years on your current loan, even at a lower rate.
- Forgetting that rolling closing costs into the loan accrues interest on those fees for decades.
- Assuming you will stay for 30 years when job mobility, family changes, or health issues often mean selling sooner.
Frequently asked questions
What if I plan to sell in 3 years?+
If break-even is 4+ years, you leave money on the table. This calculator will show a negative stay-horizon number — your answer is no.
What is a good rate drop to refinance?+
There is no universal threshold. A 0.5% drop on a $400k loan saves ~$100/month. If break-even < your stay years, it is worth it regardless of the rate-drop magnitude.
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Open main calculator →Same underlying engine, written for different use cases. Pick the angle that matches your situation.