Free Mortgage Refinance Calculator — Should You Refinance?
Determine if refinancing your mortgage makes financial sense with our free calculator. Compare your current loan to a new one, calculate the break-even point, monthly savings, and total lifetime cost impact — all in seconds.
See a side-by-side comparison of current vs. new mortgage payments, interest costs, and total remaining cost. The calculator warns you when a lower monthly payment actually increases your lifetime cost due to term extension. Option to roll closing costs into the new loan. Current February 2026 refinance rates included for reference. 100% private — no data leaves your browser.
How to use Mortgage Refinance Calculator
- Enter current mortgage details — Add your remaining balance, current interest rate, and remaining term in years.
- Set new mortgage terms — Choose your expected new rate and term. Select from 10, 15, 20, 25, or 30-year options.
- Add closing costs — Enter estimated closing costs (typically 2–6% of loan amount). Toggle whether to roll them into the new loan.
- Review the analysis — See monthly savings or increase, break-even point, and lifetime savings with color-coded indicators.
Features
- Break-Even Analysis — Shows exactly how many months until closing costs are recouped through monthly savings
- Side-by-Side Comparison — Current vs. new mortgage: monthly payment, rate, term, total interest, and total cost
- Term Extension Warning — Alerts when lower monthly payment actually increases total lifetime cost
- Closing Cost Roll-In — Option to add closing costs to the new loan amount for accurate comparison
- Current Rates — February 2026 refinance rates for 30-year, 15-year, cash-out, and jumbo loans
Frequently Asked Questions
What is the break-even point on a refinance?
The break-even point is how long it takes for your monthly savings to recoup the closing costs of refinancing. Formula: Break-Even Months = Total Closing Costs ÷ Monthly Savings. For example, $5,000 in closing costs with $231/month savings = 22 months. If you plan to stay in your home longer than the break-even period, refinancing is generally worth it.
Is it worth refinancing for 1 percent?
A 1% rate reduction can save significantly over the loan term. On a $350,000 loan, dropping from 7% to 6% saves about $231/month. However, you must factor in closing costs (typically $5,000–$15,000) and how long you plan to stay. Use the calculator to find your specific break-even point.
Will mortgage rates go down in 2026?
As of February 2026, 30-year fixed rates are around 5.98%, the lowest in 3.5 years. The Fed has been cutting rates, and forecasts suggest continued gradual decline. However, rates are unlikely to return to the 2020-2021 levels of 2.5-3%. Lock in rates when your break-even analysis makes sense rather than trying to time the market.
Does refinancing hurt your credit score?
Refinancing may cause a small, temporary dip in your credit score (typically 5-10 points) due to the hard credit inquiry and new account. However, this usually recovers within a few months. The long-term impact is minimal, and the financial benefits of a lower rate or payment often outweigh the short-term credit score effect.