What is a refinance break-even point?

It is the month when the money you have saved finally exceeds what the refinance cost you. This calculator measures it by comparing total cost — payments made plus the balance still owed, minus any cash received, against simply keeping your current mortgage. If your break-even month falls after you expect to sell or refinance again, the refinance costs you money even though the monthly payment fell.

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.

Is it worth refinancing to a shorter term?

Shorter terms usually carry lower rates and dramatically less total interest, but the monthly payment goes up, often by more than people expect. If the higher payment is comfortable, a 15-year refinance is one of the most cost-effective moves available. If it is not, extra principal payments on your existing loan get you most of the interest savings while keeping the lower required payment as a safety net.

Should I roll closing costs into the loan or pay them in cash?

Paying in cash keeps the balance lower and avoids paying interest on the fees, but it consumes savings immediately. Rolling them in preserves cash at the cost of interest over the life of the loan. On a $8,000 cost financed for 30 years at 6%, you pay roughly $9,000 in additional interest on the fees alone. The calculator models both, so you can see the difference rather than guess at it.

Does refinancing reset my mortgage back to 30 years?

It does if you choose a 30-year term, and that is the most 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.

Should You Refinance, Recast, or Keep Your Mortgage?

Compare your current mortgage side by side with a rate-and-term refinance, a cash-out refinance, a HELOC, a home equity loan, a recast, and extra principal payments — scored over the years you actually expect to stay, not over a full term you probably will not see out.

Private by design. Your numbers stay on this device.

Educational estimates only. Not financial, tax, or lending advice.

Should you refinance?

Refinancing makes financial sense 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. That break-even test matters more than the size of the rate drop. A 0.5% improvement can pay for itself in under two years on a large balance with low closing costs, while a 1.5% improvement can lose money on a small balance with high costs if you move in three years.

The two things that most often reverse the answer are the term reset (refinancing into a fresh 30 years after paying for eight) and financed closing costs (paying interest on the fees for the life of the loan). Both are modelled below.

Built for US mortgages. Every figure below is an editable example you enter — never a live quote.

Stays on this device

Your mortgage today

Take these from your most recent statement. Results update as you type.

Current mortgage balance

The payoff balance you owe today, not the original loan amount.

Current interest rate

Years remaining

Plus months

Current monthly principal & interest

Leave at 0 to calculate it from the balance, rate and term.

First payment date

Sets the dates in the schedule below.

Estimated estimated home value

Today's value, used for loan-to-value and how much equity you can reach.

The refinance you are considering

Only the figures this page needs.

Proposed interest rate

Enter the rate after any discount points you are buying.

New loan term

Matching your remaining term avoids restarting the amortization clock.

Closing costs amount

Closing costs percent

Edit either one and the other follows.

Discount points

Counted as an upfront cost, in addition to closing costs above.

Finance closing costs into the loan

Keeps cash in your pocket and raises the balance you pay interest on.

Taxes, insurance and HOA

The same in every option here, so they cannot change which one wins — but they are part of the payment shown below, so they should be yours rather than ours.

Start from a state estimate

Property tax runs from about 0.26% of value in Hawaii to about 2.08% in New Jersey, and insurance from roughly $738 a year in Hawaii to $8,471 in Florida. On a typical loan that gap moves the monthly payment further than a half-point of interest rate does.

Annual property tax

Annual homeowners insurance

Monthly HOA dues

How long you will keep this mortgage

Years you expect to stay

Costs are totalled over this period, not over the full term.

Results update as you type — this just jumps you down to them.

Over your 7-year stay

A rate-and-term refinance replaces your loan at a new rate. The closing costs are paid up front and repaid out of the monthly saving, so the question is whether you stay long enough to get them back.

Keep current
Monthly payment
$2,767
Net cost over your stay
$465,286
vs keeping your mortgage
—
Break-even
—
Rate & term refi
Monthly payment
$2,623
Net cost over your stay
$449,929
vs keeping your mortgage
$15,357
Break-even
Month 29

Side-by-side comparison of every selected mortgage scenario across monthly cost, closing costs, interest, break-even point and payoff time.
Measure	Keep current	Rate & term refi
Interest rateThe rate on the new or largest loan in this scenario.	6.875%	5.75%
Starting loan balance	$320,000Low	$327,500
Starting LTV (loan-to-value)	71.1%	72.8%
Principal & interest	$2,204	$2,060Low
Extra principalVoluntary principal on top of the scheduled payment. Part of what you pay each month, so it belongs in the all-in figure.	—	—
PMI	—	—
Property tax + insuranceIdentical across every scenario for the same home, but a real part of the monthly bill.	$563	$563
Monthly HOA dues	—	—
All-in monthly payment	$2,767	$2,623Low
Total closing costs	NoneLow	$7,500
Cash needed at closingClosing costs paid in cash, plus any lump sum you contribute.	$0Low	$0Low
Cash received	None	None
Interest over 7 years	$145,286	$122,429Low
Balance left after 7 yearsWhat you would still owe when you expect to sell or refinance again.	$280,138	$276,862Low
Equity after 7 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.	$169,862	$173,138Low
Invested balance after 7 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.	$465,286	$449,929Low
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	+$15,357Low
Why that differs from interest saved	—	$22,857 less interest, less $7,500 of extra balance you start out owing — leaving you $15,357 better off.
Break-even point“Ahead from month 1” means there was no upfront cost to recover. “Never recovers” means the costs are never paid back.	—	Month 29
Simple paybackUpfront 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.	—	No upfront cash to recover
Time to payoff	26 years	25 yearsLow
Total interest, full term	$367,691	$290,598Low
Lifetime cost (interest + costs)	$367,691	$298,098Low

How to read this: “Low” marks the lowest figure among the scenarios shown — it 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.

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 the figure that actually leaves your account. Switch to the annual view for a year-by-year summary, or download the full schedule as a CSV that opens in Excel, Google Sheets and Numbers.

Scenario

View

Filter by year

Monthly amortization schedule for Keep current mortgage, Current mortgage.
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	—	$562.50	—	$2,766.65	79.9%
2	Feb 01, 2026	$319,629.18	$2,204.15	$372.94	$1,831.21	—	$319,256.24	$3,664.54	—	$562.50	—	$2,766.65	79.8%
3	Mar 01, 2026	$319,256.24	$2,204.15	$375.08	$1,829.07	—	$318,881.16	$5,493.61	—	$562.50	—	$2,766.65	79.7%
4	Apr 01, 2026	$318,881.16	$2,204.15	$377.23	$1,826.92	—	$318,503.93	$7,320.53	—	$562.50	—	$2,766.65	79.6%
5	May 01, 2026	$318,503.93	$2,204.15	$379.39	$1,824.76	—	$318,124.54	$9,145.29	—	$562.50	—	$2,766.65	79.5%
6	Jun 01, 2026	$318,124.54	$2,204.15	$381.56	$1,822.59	—	$317,742.98	$10,967.88	—	$562.50	—	$2,766.65	79.4%
7	Jul 01, 2026	$317,742.98	$2,204.15	$383.75	$1,820.40	—	$317,359.23	$12,788.28	—	$562.50	—	$2,766.65	79.3%
8	Aug 01, 2026	$317,359.23	$2,204.15	$385.95	$1,818.20	—	$316,973.28	$14,606.48	—	$562.50	—	$2,766.65	79.2%
9	Sep 01, 2026	$316,973.28	$2,204.15	$388.16	$1,815.99	—	$316,585.12	$16,422.47	—	$562.50	—	$2,766.65	79.2%
10	Oct 01, 2026	$316,585.12	$2,204.15	$390.38	$1,813.77	—	$316,194.74	$18,236.24	—	$562.50	—	$2,766.65	79.0%
11	Nov 01, 2026	$316,194.74	$2,204.15	$392.62	$1,811.53	—	$315,802.12	$20,047.77	—	$562.50	—	$2,766.65	79.0%
12	Dec 01, 2026	$315,802.12	$2,204.15	$394.87	$1,809.28	—	$315,407.25	$21,857.05	—	$562.50	—	$2,766.65	78.8%

Showing 1–12 of 312 payments

Page 1 of 26

Download any scenario

Each file is generated in your browser — nothing is uploaded. Scenarios with a second lien include a separate block for each loan.

Educational estimates only. Not financial, tax, or lending advice. Want every option side by side instead? Open the full comparison.

How to use this refinance calculator

Four inputs decide almost the entire answer. The rest refine it.

Your current balance and rate. Take the payoff balance from your latest statement, not the original loan amount. If you know your exact principal and interest payment, enter it — it is more accurate than a derived figure.
How long you have left. Years and months remaining, not the original term. This is what a new 30-year loan would be resetting.
The offered rate, term and closing costs. Take these from a Loan Estimate rather than an advertised rate. Advertised rates assume a borrower profile that may not be yours.
How long you expect to stay. The single most decisive input, and the one most calculators ignore. Every scenario is scored over this horizon.

Results update as you type. Nothing is submitted anywhere — the calculation runs in your browser.

Rate-and-term vs cash-out refinance

Two different products with different pricing, different limits, and different reasons to exist.

How the two refinance types compare
	Rate-and-term	Cash-out
New loan amount	Payoff balance (+ financed costs)	Balance + cash taken (+ costs)
Cash to you at closing	None	The amount you request
Effect on LTV	Unchanged or lower	Higher
Typical LTV cap	Up to ~95% on conventional	Commonly ~80%
Relative pricing	Better	Usually priced above rate-and-term
Main reason to use it	Lower the rate or change the term	Access equity as cash

General characteristics only. Caps, pricing and eligibility differ by lender, loan product, occupancy and location.

If you only want better pricing, a rate-and-term refinance is the cleaner instrument. If you need cash, compare a cash-out refinance against second liens before assuming it is the answer — see cash-out refinance vs HELOC.

The 30-year reset trap

The most common way a refinance quietly costs money while appearing to save it.

Interest is charged on the outstanding balance, so early payments are interest-heavy — on a 30-year loan at 6.5%, roughly three-quarters of the first payment is interest. Eight years in, that ratio has shifted meaningfully in your favour. Refinancing into a fresh 30-year term throws that progress away and puts you back at the start of the curve.

The monthly payment falls, which feels like winning. But you have added years of payments, and total interest can rise even at a lower rate. The fix is straightforward: match the new term to what you have left. If you have 22 years remaining, compare a 20-year and a 25-year refinance rather than defaulting to 30. The comparison table above shows total interest for whichever term you pick.

Refinance calculator questions

How much does my interest rate need to drop before refinancing is worth it?: There is no universal threshold. The old '1% rule' ignores the two things that actually decide it: your closing costs and how long you will keep the loan. A 0.5% drop can pay for itself in under two years on a large balance with low costs, while a 1.5% drop can lose money on a small balance with high costs if you sell in three years. Run your own numbers and look at the break-even month, not the rate difference.
What is a refinance break-even point?: It is the month when the money you have saved finally exceeds what the refinance cost you. This calculator measures it by comparing total cost — payments made plus the balance still owed, minus any cash received, against simply keeping your current mortgage. If your break-even month falls after you expect to sell or refinance again, the refinance costs you money even though the monthly payment fell.
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.
Is it worth refinancing to a shorter term?: Shorter terms usually carry lower rates and dramatically less total interest, but the monthly payment goes up, often by more than people expect. If the higher payment is comfortable, a 15-year refinance is one of the most cost-effective moves available. If it is not, extra principal payments on your existing loan get you most of the interest savings while keeping the lower required payment as a safety net.
Should I roll closing costs into the loan or pay them in cash?: Paying in cash keeps the balance lower and avoids paying interest on the fees, but it consumes savings immediately. Rolling them in preserves cash at the cost of interest over the life of the loan. On a $8,000 cost financed for 30 years at 6%, you pay roughly $9,000 in additional interest on the fees alone. The calculator models both, so you can see the difference rather than guess at it.
Does refinancing reset my mortgage back to 30 years?: It does if you choose a 30-year term, and that is the most 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.