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Should I refinance
my mortgage?

See your new payment, monthly savings, and how fast you break even

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Refinancing looks worth it
You break even before you plan to move
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Monthly savings
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New payment
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Break-even

Current vs new loan

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Break-even analysis

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When to refinance

Refinancing makes sense when your new rate is at least 0.5–1% lower and you plan to stay long enough to recoup closing costs.

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Closing costs

Expect to pay 2–5% of your loan amount in closing costs. On a $300,000 loan, that is $6,000–$15,000.

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Break-even point

The break-even point is when your monthly savings equal your closing costs. If you move before then, refinancing may not pay off.

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No-cost refinance

Some lenders offer no-closing-cost refinances. The costs are rolled into the loan or offset with a slightly higher rate.

Common questions

When should I refinance my mortgage?

Refinancing generally makes sense when you can lower your interest rate by at least 0.5% to 1%, when you plan to stay in your home long enough to recoup the closing costs, or when you want to switch from an adjustable-rate to a fixed-rate mortgage.

What is a break-even point in refinancing?

The break-even point is how many months it takes for your monthly savings to equal the closing costs of the refinance. If your break-even is 24 months and you plan to stay in the home for 5 years, refinancing makes financial sense.

How much does it cost to refinance a mortgage?

Refinancing typically costs 2% to 5% of the loan amount in closing costs. On a $300,000 loan, that is $6,000 to $15,000. Some lenders offer no-closing-cost refinances, but these usually come with a slightly higher interest rate.

Does refinancing hurt your credit score?

Refinancing causes a small, temporary dip in your credit score due to the hard inquiry from the lender. This typically recovers within a few months. Shopping multiple lenders within a short window (14–45 days) usually counts as a single inquiry.

What credit score do I need to refinance?

Most lenders require a minimum credit score of 620 for a conventional refinance. To qualify for the best rates, a score of 740 or higher is ideal. FHA refinances may be available with scores as low as 580.

How long does a mortgage refinance take?

A mortgage refinance typically takes 30 to 45 days from application to closing. Some streamline refinance programs can close faster, in as little as 2 to 3 weeks.

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