Quick compare
Eight things you can do with the mortgage you already have, each costed on the same figures and shown side by side, so you can see what each would mean for you and pick the one that fits.
Enter what you owe, your rate, and how long you expect to stay in the home. Each option is priced over that period, counting the payment, the interest, the closing costs and the equity you build, and they appear in one table in a fixed order with no ranking.
Your numbers stay on this device. These are educational estimates, not financial, tax or lending advice.
Built for US mortgages. Every rate, cost and tax figure below is an editable example you enter, never a live quote.
Refinance decision
Your decision dashboard
Each card shows which scenario leads on one measure over your 26 years planned stay, and what you give up to get it. No single option is best, because these measures pull against each other.
Lowest monthly payment
Recast after a lump-sum payment
$1,860/mo all-in
Trade-off: A lower payment usually means a longer term or a bigger balance, which can raise what you pay in total.
Lowest cost over your planned stay
Keep mortgage + extra principal
$605,112
Trade-off: This counts payments made plus the balance still owed at the end of your stay, minus any cash you received. It can still carry a higher monthly payment.
Fastest payoff
Keep mortgage + extra principal
21 years
Trade-off: Paying off soonest normally requires the highest monthly outlay and ties up cash you cannot easily get back.
Lowest closing cash needed
Keep current mortgage
$0
Trade-off: Paying little or nothing upfront often means costs are financed into the balance, where they accrue interest.
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Scenario by scenario
Keep current mortgage
Change nothing. No closing costs, no new loan, and your existing rate and payoff date stay exactly as they are.
- All-in monthly
- $2,204
- Cost over your stay
- $687,691
- vs keeping your loan
- Baseline
- Break-even
- —
Rate-and-term refinance
Replace your mortgage with a new 26-year loan at 5.75%.
- All-in monthly
- $1,979
- Cost over your stay
- $617,332
- vs keeping your loan
- +$70,358
- Break-even
- Ahead from month 1
Cash-out refinance
Replace your mortgage and take cash out, at 5.75% over 26 years.
- All-in monthly
- $2,457
- Cost over your stay
- $667,012
- vs keeping your loan
- +$20,679
- Break-even
- Month 48
This scenario starts at about 82% loan-to-value. Many lenders cap cash-out refinances at 80% LTV and price above 80% differently.
HELOC + keep current mortgage
Keep your 6.875% mortgage untouched and add a home equity line of credit at 8%.
- All-in monthly
- $2,537
- Cost over your stay
- $775,120
- vs keeping your loan
- -$87,429
- Break-even
- Never recovers
Payment jump in month 121
$2,537 → $2,622(+3%)
Combined first mortgage plus HELOC, the month the interest-only draw period ends. Nothing has been repaid until then.
Fixed home equity loan + keep current mortgage
Keep your existing mortgage and add a fixed 15-year second loan at 8%.
- All-in monthly
- $2,682
- Cost over your stay
- $723,699
- vs keeping your loan
- -$36,008
- Break-even
- Never recovers
Recast after a lump-sum payment
Apply a lump sum to principal in month 1, keep your 6.875% rate, and re-amortize the smaller balance over the term that is left.
- All-in monthly
- $1,860
- Cost over your stay
- $630,240
- vs keeping your loan
- +$57,451
- Break-even
- Ahead from month 1
Keep mortgage + extra principal
Keep your current rate and term but send additional money to principal each month, each year, or as a one-time payment.
- All-in monthly
- $2,404
- Cost over your stay
- $605,112
- vs keeping your loan
- +$82,579
- Break-even
- Ahead from month 1
Full comparison
Every measure, side by side, over the 26 years you expect to stay. Scroll the table sideways on a narrow screen.
Compared over
the 26 years you expect to stay
Two break-even figures. The conventional figure counts only the monthly payment saving against the cash you pay upfront. Ours also counts what you still owe when you sell, which is why the two disagree.
| Leave it alone | Replace your mortgage | Borrow beside it | Change your current loan | ||||
|---|---|---|---|---|---|---|---|
| Measure | Keep current | Rate & term refi | Cash-out refiOut of reach | HELOC + mortgage | Equity loan + mortgage | Recast | Extra payments |
| Open to you?Based on what you told us about your cash, your spare income and your loan type. These are limits lenders commonly apply rather than fixed rules, and a servicer may say otherwise. | Yes, on the figures you entered. | Yes, on the figures you entered. | Takes the balance past the 80% loan-to-value cap lenders usually apply to a cash-out. | Yes, on the figures you entered. | Yes, on the figures you entered. | Yes, on the figures you entered. | Yes, on the figures you entered. |
| Interest rateThe rate on the new or largest loan in this scenario. | 6.875% | 5.75% | 5.75% | 8% | 8% | 6.875% | 6.875% |
| Starting loan balance | $320,000 | $320,000 | $370,000 | $370,000 | $370,000 | $270,000Low | $320,000 |
| Starting LTV (loan-to-value) | 71.1% | 71.1% | 82.2% | 82.2% combined | 82.2% combined | 60.0% | 71.1% |
| Principal & interest | $2,204 | $1,979 | $2,288 | $2,537 | $2,682 | $1,860Low | $2,204 |
| Extra principalVoluntary principal on top of the scheduled payment. Part of what you pay each month, so it belongs in the all-in figure. | — | — | — | — | — | — | $200 |
| PMI | — | — | $170 | — | — | — | — |
| Property tax + insuranceIdentical across every scenario for the same home, but a real part of the monthly bill. | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Monthly HOA dues | — | — | — | — | — | — | — |
| All-in monthly payment | $2,204 | $1,979 | $2,458 | $2,537 | $2,682 | $1,860Low | $2,404 |
| Total closing costs | NoneLow | NoneLow | NoneLow | NoneLow | NoneLow | NoneLow | NoneLow |
| Cash you have to put inClosing costs paid in cash, plus any lump sum or one-time payment this option needs upfront. | NoneLow | NoneLow | NoneLow | NoneLow | NoneLow | $50,000 | NoneLow |
| Monthly commitment on topMoney you have to keep finding every month beyond the required payment: voluntary extra principal, or the same money invested instead. The required payment itself is the all-in figure above. | NoneLow | NoneLow | NoneLow | NoneLow | NoneLow | NoneLow | $200/mo |
| Cash received | None | None | $50,000 | $50,000 | $50,000 | None | None |
| Interest over 26 years | $367,691 | $297,332 | $343,790 | $455,120 | $403,699 | $310,240 | $285,112Low |
| Balance left after 26 yearsWhat you would still owe when you expect to sell or refinance again. | $0Low | $0Low | $0Low | $17,131 | $0Low | $0Low | $0Low |
| Equity after 26 yearsHome value less the balance owed. Uses your assumed appreciation rate, which is 0% unless you change it. It is never used to remove mortgage insurance early. | $450,000Low | $450,000Low | $450,000Low | $432,869 | $450,000Low | $450,000Low | $450,000Low |
| Invested balance after 26 yearsOnly the growth on this account is credited against net cost. The contributions are money you paid in, so counting the whole balance would count them twice. | — | — | — | — | — | — | — |
| Net cost over your planned stayCash closing costs + payments made + balance still owed − cash received. Excludes property tax, insurance and HOA, which are identical across scenarios. | $687,691 | $617,332 | $667,012 | $775,120 | $723,699 | $630,240 | $605,112Low |
| Savings vs keeping your mortgageThis is not the same as interest saved: it also counts the balance you still owe at the end of your stay and any cash you paid upfront. The row above reconciles the two. | Baseline | +$70,358 | +$20,679 | -$87,429 | -$36,008 | +$57,451 | +$82,579Low |
| Why that differs from interest saved | — | They agree. | $23,901 less interest, less $50,000 of extra balance you start out owing, plus $50,000 of cash you received — leaving you $20,679 better off. | They agree. | They agree. | They agree. | They agree. |
| Break-even point, ours“Ahead from month 1” means there was no upfront cost to recover. “Never recovers” means the costs are never paid back. | — | Ahead from month 1 | Month 48 | Never recovers | Never recovers | Ahead from month 1 | Ahead from month 1 |
| Break-even point, conventionalUpfront cash divided by the monthly payment saving. This is the number most people mean by break-even, and it flatters a refinance: it ignores the principal you stop paying down when the term restarts. The equity-adjusted figure above is the one to rank on. | — | Nothing upfront to recover | Nothing upfront to recover | Nothing upfront to recover | Nothing upfront to recover | 12 years 2 months | Nothing upfront to recover |
| Time to payoff | 26 years | 26 years | 26 years | 30 years | 26 years | 26 years | 21 yearsLow |
| Total interest, full term | $367,691 | $297,332 | $343,790 | $458,063 | $403,699 | $310,240 | $285,112Low |
| Lifetime cost (interest + costs) | $367,691 | $297,332 | $343,790 | $458,063 | $403,699 | $310,240 | $285,112Low |
How to read this: “Low” marks the lowest figure among the scenarios shown and is not a recommendation. Net cost counts payments made plus the balance still owed at the end of your stay, minus cash received, which is what makes loans of different sizes and terms comparable.
Charts
What each scenario means
Keep current mortgage
- This is the baseline every other scenario is measured against.
Rate-and-term refinance
- A rate-and-term refinance replaces your entire existing mortgage balance with a new loan. No cash is taken out.
Cash-out refinance
- A cash-out refinance replaces your whole mortgage, so the new rate applies to your existing balance as well as the cash you take.
- The cash you receive is offset by the larger balance you now owe, so this starts behind by roughly its closing costs, exactly like any other refinance. It then has to overcome the interest on the cash you took as well, which is why a cash-out often never breaks even against simply keeping your loan.
This scenario starts at about 82% loan-to-value. Many lenders cap cash-out refinances at 80% LTV and price above 80% differently.
HELOC + keep current mortgage
- A HELOC is a second lien: your first mortgage and its rate stay exactly as they are.
- HELOC rates are commonly variable and can move with the prime rate, so the payments modelled here assume a rate that never changes. Treat them as a snapshot, not a forecast.
- During the 10-year draw period this model pays interest only, so the balance does not fall. The payment jumps from 333.33 to 418.22 when the 20-year repayment period begins.
- No rate stress is applied, so this models the HELOC as if its variable rate never moves. Add a stress of two to four points to see what a normal rate cycle would do to the payment.
- The monthly figures shown are the combined first mortgage plus HELOC payment.
Fixed home equity loan + keep current mortgage
- A fixed-rate home equity loan is a second lien with a fixed payment, so your first mortgage and its rate are untouched.
- Unlike a HELOC, the rate and payment do not move, and the full amount is drawn at closing.
- The monthly figures shown are the combined first mortgage plus equity loan payment.
Recast after a lump-sum payment
- A recast keeps your existing interest rate and payoff date. Only the balance and the required payment change.
- The lump sum is applied at the first payment.
- Compare this against the 'Extra payments' scenario: the same money, without the recast, leaves your payment where it is and shortens the loan instead.
- Recast availability varies by lender and loan type: many require a minimum lump sum, charge a fee, and government-backed loans frequently are not eligible. Confirm with your servicer before planning around it.
- Because the lump sum is cash out of your pocket, this scenario starts behind on the savings chart and catches up through lower interest.
Keep mortgage + extra principal
- Extra principal costs nothing to start, carries no closing costs, and cannot be undone: the money is not accessible again unless you borrow against the home.
- Unlike a recast, extra payments do not lower your required monthly payment. They shorten the loan instead.
Want the terminology behind these figures? The mortgage glossary defines every term used here, including break-even point, LTV and mortgage recast.
Full amortization schedule
Every payment, month by month: how much goes to interest, how much retires principal, and what you still owe afterwards. The last money column is the all-in cost (principal, interest, any extra you send, mortgage insurance, property tax, homeowners insurance and HOA dues), which is what leaves your account. Switch to the annual view for a year-by-year summary. Printing and the CSV both follow whichever view you are in, so a year-by-year download gives a year-by-year file, which opens in Excel, Google Sheets and Numbers.
| Month | Payment date | Beginning balance | Payment | Principal | Interest | Extra principal | Ending balance | Cumulative interest | Mortgage insurance | Taxes & insurance | HOA | Total monthly cost | LTV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Jan 01, 2026 | $320,000.00 | $2,204.15 | $370.82 | $1,833.33 | — | $319,629.18 | $1,833.33 | — | — | — | $2,204.15 | 71.0% |
| 2 | Feb 01, 2026 | $319,629.18 | $2,204.15 | $372.94 | $1,831.21 | — | $319,256.24 | $3,664.54 | — | — | — | $2,204.15 | 71.0% |
| 3 | Mar 01, 2026 | $319,256.24 | $2,204.15 | $375.08 | $1,829.07 | — | $318,881.16 | $5,493.61 | — | — | — | $2,204.15 | 70.9% |
| 4 | Apr 01, 2026 | $318,881.16 | $2,204.15 | $377.23 | $1,826.92 | — | $318,503.93 | $7,320.53 | — | — | — | $2,204.15 | 70.8% |
| 5 | May 01, 2026 | $318,503.93 | $2,204.15 | $379.39 | $1,824.76 | — | $318,124.54 | $9,145.29 | — | — | — | $2,204.15 | 70.7% |
| 6 | Jun 01, 2026 | $318,124.54 | $2,204.15 | $381.56 | $1,822.59 | — | $317,742.98 | $10,967.88 | — | — | — | $2,204.15 | 70.6% |
| 7 | Jul 01, 2026 | $317,742.98 | $2,204.15 | $383.75 | $1,820.40 | — | $317,359.23 | $12,788.28 | — | — | — | $2,204.15 | 70.5% |
| 8 | Aug 01, 2026 | $317,359.23 | $2,204.15 | $385.95 | $1,818.20 | — | $316,973.28 | $14,606.48 | — | — | — | $2,204.15 | 70.4% |
| 9 | Sep 01, 2026 | $316,973.28 | $2,204.15 | $388.16 | $1,815.99 | — | $316,585.12 | $16,422.47 | — | — | — | $2,204.15 | 70.3% |
| 10 | Oct 01, 2026 | $316,585.12 | $2,204.15 | $390.38 | $1,813.77 | — | $316,194.74 | $18,236.24 | — | — | — | $2,204.15 | 70.3% |
| 11 | Nov 01, 2026 | $316,194.74 | $2,204.15 | $392.62 | $1,811.53 | — | $315,802.12 | $20,047.77 | — | — | — | $2,204.15 | 70.2% |
| 12 | Dec 01, 2026 | $315,802.12 | $2,204.15 | $394.87 | $1,809.28 | — | $315,407.25 | $21,857.05 | — | — | — | $2,204.15 | 70.1% |
Showing 1–12 of 312 payments
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Each file is generated in your browser, and nothing is uploaded. Scenarios with a second lien include a separate block for each loan.
Educational estimates only. Not financial, tax, or lending advice. Every rate here is an example you enter, never a live quote or an offer. Verify loan terms, closing costs, property taxes, insurance and mortgage insurance with qualified providers before deciding.
Need more controls, such as the closing-cost split, mortgage insurance, HELOC draw terms or appreciation? Open the full comparison →
Should you refinance, recast, or keep your mortgage?
Refinancing is worth it when the total cost of the new loan (closing costs, payments made, and the balance still owed) falls below the cost of keeping your current mortgage before you sell or refinance again. The size of the rate drop matters less than where that break-even month falls.
If your current rate is at or above today’s rates, a rate-and-term refinance is usually the strongest move. If it is well below and you need cash, a HELOC or home equity loan normally beats a cash-out refinance, because a second lien leaves your low first-mortgage rate alone. If you have a lump sum and want a lower required payment without giving up a good rate, a recast is the only option that does it.
How refinancing works
A refinance is a new mortgage that pays off the one you have.
Because the old loan is retired in full at closing, the new rate applies to your entire balance rather than only to the part you were unhappy with. A rate-and-term refinance changes the rate, the term or both and returns no cash; a cash-out refinance increases the balance so you can take equity out.
The step people underestimate is the term reset. Refinancing into a fresh 30-year loan after eight years of payments puts you back at the interest-heavy start of the amortization schedule, so a lower rate over a longer term can still cost more in total.
Refinance vs. HELOC vs. home equity loan
All three convert equity into debt. They differ in what happens to the mortgage you already have.
What usually decides it is how good your current rate is. A cash-out refinance replaces your first mortgage entirely, so today’s rate applies to the whole balance. A HELOC and a home equity loan are second liens that leave it untouched, so the higher rate applies only to what you borrow.
That is why a second lien at a visibly higher rate is frequently the cheaper choice for someone holding a below-market first mortgage. There is more on this in cash-out refinance vs HELOC.
What a refinance break-even point means
The month your accumulated savings finally exceed what the refinance cost you.
The familiar shortcut divides closing costs by the monthly payment reduction. It is easy to compute but misleading, because part of that reduction usually comes from stretching repayment over more years, which postpones debt rather than saving money.
This calculator therefore measures break-even on total cost: closing costs paid in cash, plus every payment made, plus the balance still owed, minus any cash received, against simply keeping your current mortgage. If that month falls after you expect to sell, the refinance loses you money even though the payment went down.
Why PITI is more than principal and interest
The quoted payment and the payment that leaves your account are rarely the same number.
PITI is principal, interest, taxes and insurance. Rate quotes advertise only the first two. The other two come with the property whether or not they are escrowed, and can add a quarter to a half again on top of principal and interest.
PMI is temporary on conventional loans, which is why this calculator can drop it rather than carrying it for thirty years, and escrow amounts are estimates that get re-analysed, so even a fixed-rate payment can change.
How closing costs and discount points affect savings
Closing costs are the numerator of every break-even calculation, which makes them matter more than the rate itself in a close decision.
Closing costs on a refinance commonly run about 2% to 5% of the loan amount. Pay them in cash and the money is gone from savings on day one; finance them and you pay interest on the fees for the life of the loan. A “no-closing-cost” refinance still has them: the lender adds them to the balance or raises the rate to recover them.
Discount points are a separate bet with their own recovery period: cost divided by the monthly saving. Buy points and sell before that month and you lose money.
Recast vs. extra payments
Both put money toward principal, but only a recast lowers your required monthly payment.
Extra principal payments shorten the loan while your required payment stays exactly the same. A recast applies a lump sum and re-amortizes the smaller balance over your remaining term, lowering the required payment while keeping your existing rate and payoff date.
Which one you want depends on your goal. Whether you can recast at all depends on your servicer: many set a minimum lump sum, charge a fee, and exclude government-backed loans.
Guides
- Does refinancing reset your mortgage?A new 30-year term restarts the interest-heavy years you already paid through.
- Recast vs extra paymentsBoth send a lump sum to principal. Only one lowers the payment you are required to make.
- Refinancing when your rate is already lowWhy a below-market rate is an asset, and the two cases where giving it up still makes sense.
- What refinance break-even really meansThe usual formula ignores the balance you stop paying down. That is where it goes wrong.
- Are no-closing-cost refinances real?The costs are real. The question is whether you pay them in cash, in the balance, or in the rate.
- PITI vs principal and interestWhy the payment that leaves your account is larger than the one you were quoted.
- Are discount points worth it?Points are prepaid interest. Whether they pay back depends on how long you keep the loan.
- When can I stop paying PMI?Two different thresholds, two different rules, and one of them you have to ask for.
Common mortgage refinance questions
- Should I refinance or take a HELOC if I need cash?
- It depends heavily on your existing rate. A cash-out refinance replaces your entire mortgage, so a low existing rate is re-priced at today's rate on the whole balance. A HELOC or home equity loan is a second lien that leaves the first mortgage alone, so you only pay the higher rate on the amount you borrow. When your current rate is well below market, a second lien is frequently cheaper despite its higher headline rate. When your current rate is at or above market, a cash-out refinance can win.
- What is the difference between a mortgage recast and extra payments?
- Both apply money to principal, but they do different things. Extra payments shorten the loan while your required monthly payment stays the same. A recast re-amortizes the reduced balance over the remaining term, which lowers the required payment but keeps the original payoff date. A recast is the only way to reduce a required payment without giving up a below-market rate. Not all servicers or loan types offer it.
- Does refinancing reset my mortgage back to 30 years?
- It does if you choose a 30-year term, which is a common mistake in refinancing. Resetting to 30 years after paying for eight puts you back at the interest-heavy start of the amortization curve. Choosing a term close to what you have left (20 or 25 years, or 15 if the payment fits) captures the rate improvement without restarting the clock.
- Why is my monthly payment higher than the principal and interest figure I was quoted?
- Because principal and interest is only part of the bill. Property taxes, homeowners insurance, mortgage insurance and HOA dues are all real monthly costs, and together they routinely add 25% to 50% on top of P&I. Taxes and insurance also vary enormously by location, so two identical loans on identical homes can differ by hundreds of dollars a month. Every result in this tool shows the all-in figure.
- Are discount points worth paying?
- Only if you keep the loan past the point where the upfront cost is recovered. One point costs 1% of the loan amount and typically buys somewhere near a quarter-point rate reduction, though this varies by lender and by day. Divide the cost by the monthly saving to get the recovery period. If you expect to sell or refinance before then, points lose money.
- When can I stop paying PMI?
- On conventional loans in the United States, the Homeowners Protection Act lets you request cancellation once the balance reaches 80% of the original value, and requires the servicer to terminate it automatically at 78%. Appreciation can get you there faster, but that route usually requires a new appraisal and the servicer's agreement. FHA mortgage insurance follows different rules and is frequently permanent for the life of the loan.
- Does this calculator use live mortgage rates?
- No, and deliberately so. Every rate in this tool is an editable example you supply. Live rate feeds create the impression of a quote, and no calculator can know your credit profile, property type, loan-to-value or the pricing a specific lender offers you today. Enter the rates from your own Loan Estimates for a comparison that reflects your actual options.
- Is my data sent anywhere?
- The figures you enter, no. Every calculation runs in your browser, and there is no account, no email capture, no lead form and no server here that receives a balance, a rate or an income. Drafts are saved in your own browser's local storage on this device only, and the 'Clear my data' button removes them. Usage is a separate matter: this site uses Google Analytics to count which pages get visited, and the address it reports is rebuilt without the part after the # (where your figures live), so what you typed cannot reach it. The one way figures leave this device is a link you copy yourself: 'Copy link to these numbers' puts them after the #, which browsers strip before sending the request, so they travel inside the link you paste rather than through a server here. Anyone you send that link to can read them. The privacy page lists what analytics sees and turns it off in one click. Ads come from Google AdSense, are not personalised, and receive the page address without your figures.
All calculators
- Mortgage calculatorMonthly payment, full PITI and a complete month-by-month amortization schedule.
- RefinanceWhat a rate-and-term refinance costs, and how long it takes to repay its closing costs.
- Cash-out refinanceReplacing your mortgage with a larger one and taking the difference as cash.
- HELOCA variable line behind your first mortgage, with the payment step-up modelled.
- Home equity loanA fixed second mortgage: one lump sum, one rate, one payment that never moves.
- Mortgage recastA lump sum plus a re-amortization, keeping your existing rate and payoff date.
- Extra paymentsWhat extra principal does to your payoff date and your total interest.
- Invest vs extra paymentsMoney sent to principal earns your rate for certain. Investing might earn more.
- Home affordability calculatorWork out a home price from income, debts, cash on hand and your own housing-to-income and debt-to-income ceilings.