LOANS & MORTGAGES CHANNEL
Mortgage Refinance Calculator
Calculate your refinancing monthly savings and find your cost recovery break-even month.
Calculator Variables
Calculation Overview
Calculate your monthly mortgage refinance savings and find your exact break-even point in months.
Mathematical Model & Formula
Savings = Current Monthly Payment - New Monthly Payment
Compares the standard monthly payments and divides refinancing costs by the savings to compute break-even timing.
Variables Defined:
Worked Example Scenario
Scenario: Savings of $200/month on a $5,000 refi cost.
- Savings = $200
- Cost = $5,000
- Divide $5,000 / $200 = 25
Result: 25 months break-even.
Frequently Asked Questions
When is refinancing worth it?
It is typically worth it if you can lower your rate by 0.75% or more and plan to stay in the home longer than the break-even period.