Compare your current mortgage with a new refinanced loan. See monthly savings, the breakeven month where savings exceed closing costs, and total interest saved over the remaining term.
The refinance calculator compares your current loan's remaining payments with a new loan at the specified rate and term. It calculates the total interest you would pay on each option and determines the breakeven point — the month where your cumulative savings from lower payments exceed the closing costs of refinancing.
A refinance typically makes financial sense when the breakeven point occurs well before you plan to sell or move. As a general rule, if you can recoup closing costs within 2-3 years and plan to stay in the home longer than that, refinancing is worth considering.
While monthly savings are important, also consider: resetting your loan term (a new 30-year loan restarts the clock), whether you could invest the savings instead, your plans for staying in the home, and current closing cost estimates from multiple lenders. Shopping at least 3-4 lenders can save thousands in closing costs alone.
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