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Refinance Calculator

Compare your current loan with a refinance offer to see whether lower payments, lower interest cost, or a different term actually justify the closing costs.

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New monthly payment

$1,871.26

Monthly savings

$161.28

Lifetime savings

$43,883.73

Break-even

27.9 mo

How to Use

  1. Enter your remaining balance, current rate, and the years left on the existing loan.
  2. Add the proposed refinance rate and the new term you are considering.
  3. Include closing costs so the comparison reflects the real upfront cost of replacing the loan.
  4. Review the new payment, monthly savings, lifetime cost change, and break-even point before deciding whether the refinance is worth it.

Frequently Asked Questions

What is refinance break-even?

Break-even is the number of months it takes for your monthly payment savings to recover the closing costs of the new loan.

Does a lower payment always mean the refinance is better?

No. A lower payment can come from stretching the term, and a longer term may still increase total interest even if the monthly payment looks better.

Should I always include closing costs?

Yes. Closing costs reduce the benefit of refinancing and can make a seemingly attractive rate drop less valuable than it first appears.

When does refinancing usually make the most sense?

It often makes the most sense when you can lower the rate meaningfully, keep a reasonable term, and expect to hold the loan long enough to pass the break-even point.

Can I use this for auto or personal loans?

Yes. The underlying math works for many fixed-rate installment loans, not just mortgages.

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