Mortgage CalculatorSmart Calculations

Refinance Calculator

Compare your current rate and remaining term to a new loan. See monthly P&I change, extra interest from stretching the term, and months to break even on closing costs.

Last verified: · Defaults are examples, not a live refinance average. Methodology

Quick Answer: On a remaining balance of $350,000 at 7.5% with 27 years 0 months left, estimated current P&I is $2,522.57. A new 30-year loan at 6.25% would be about $2,182.72 P&I — a monthly decrease of $339.85. Closing-cost break-even: 13.2 months.

Current loan

From your note or latest statement. Example default, not a survey average.

Remaining term used for P&I: 324 payments (27.0 years).

Estimated current monthly P&I
$2,522.57

From remaining balance, current rate, and remaining term (same amortization formula as the other tools).

New loan

Type a lender quote or a PMMS figure. We do not publish an “average refinance rate.”

This resets the clock by about 3.0 years versus your remaining term.

$4,500 is a placeholder. Use the fees on your Loan Estimate.

Break-even looks reachable in this illustration

Rule of thumb on this page: monthly P&I falls, and closing costs are recouped within 60 months and before the current remaining term ends. That is a planning check, not advice.

New monthly P&I
$2,183
Monthly savings
$340
Break-even on closing costs
13.2 months (1.1 years)
Interest saved
$36,034

Break-even vs remaining term

Months of remaining term (324) compared with months to recoup $4,500 at the illustrated monthly savings.

0Break-even at 13.2 mo324 mo left

Side-by-side comparison

MetricCurrentNew
Loan balance$350,000$354,500
Interest rate7.5%6.25%
Monthly P&I$2,522.57$2,182.72
Term27 yr 0 mo left30 years
Remaining interest$467,312$431,278

Taxes, insurance, and HOA usually continue after a refinance and are omitted here so the rate/term comparison stays P&I-only.

Refinancing FAQs

Refinancing typically makes sense when you can reduce your rate by at least 0.5-1%, plan to stay in the home long enough to break even on closing costs (usually 2-5 years), or need to access equity for major expenses. The break-even point is when your monthly savings equal the closing costs you paid.
Closing costs divided by the drop in monthly principal and interest. If the new payment is not lower, break-even is not defined. Rolling costs into the loan raises the new balance, which reduces monthly savings. This ignores tax deductions, points, and the chance you sell before recovering fees.
No. We do not invent a weekly national refinance average. Look up Freddie Mac PMMS or a lender quote, then type it as the new rate. Calculator defaults (such as 7.5% current / 6.25% new) are labeled examples.
Refinancing typically costs 2-5% of the loan amount, or $2,000-$5,000 for many borrowers. Costs include loan origination, appraisal, title insurance, and recording fees. Some lenders offer no-closing-cost refinances with a slightly higher rate. Enter your Loan Estimate, not our $4,500 placeholder.
Yes, but your rate will be higher. FHA streamline refinances require no credit check or appraisal. For conventional refinances, most lenders want a 620+ credit score. VA IRRRL (streamline) loans also have flexible credit requirements.
For conventional loans, you can refinance immediately in most cases. FHA loans require 7 months of on-time payments before a streamline refinance. Some lenders have "seasoning" requirements of 6-12 months. Always check with your current lender for restrictions.