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New Monthly Payment
$2,023
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How to Use
- 1Enter your current outstanding loan balance (find this on your latest statement).
- 2Input your current interest rate and monthly payment.
- 3Enter the new rate you've been quoted and the new loan term.
- 4Add estimated closing costs (typically 2–5% of the new loan amount).
- 5Compare the monthly savings to the break-even point to decide if refinancing makes sense.
Frequently Asked Questions
When does it make sense to refinance?+
Refinancing makes financial sense when: (1) the new rate is at least 0.5–1% lower, (2) you plan to stay in the home past the break-even point, and (3) the monthly savings justify the closing costs.
What are typical refinance closing costs?+
Refinance closing costs typically run 2–5% of the new loan amount, covering origination fees, appraisal, title insurance, and prepaid items. A no-closing-cost refinance rolls these into the rate.
Should I extend my loan term when refinancing?+
Extending from 15 to 30 years lowers monthly payments but increases total interest paid. Consider your goals: short-term cash flow vs. long-term savings.
What is a break-even point?+
The break-even point is how many months it takes for your monthly savings to cover the closing costs. If you plan to sell before breaking even, refinancing will cost you money.
Does refinancing hurt my credit score?+
Refinancing causes a hard inquiry, which may lower your score by a few points temporarily. Multiple mortgage inquiries within 30–45 days are typically treated as one inquiry by scoring models.
This calculator is for informational purposes only and does not constitute financial, legal, or tax advice. Consult a qualified professional before making real estate or financial decisions.