When does refinancing make sense?

Refinancing typically makes sense when you can lower your rate by at least 0.5-1%, plan to stay in the home past the break-even point, and the closing costs are reasonable relative to your savings.

What are typical refinance closing costs?

Closing costs typically range from 2-5% of the loan amount and may include application fees, appraisal, title insurance, and origination fees.

What is the break-even point?

The break-even point is the number of months it takes for your monthly savings to exceed the upfront closing costs. After this point, you begin saving money.

Should I refinance to a shorter term?

Refinancing to a shorter term (e.g., 30-year to 15-year) usually increases monthly payments but significantly reduces total interest paid. It depends on your cash flow and financial goals.

When does refinancing make sense?

Refinancing typically makes sense when you can lower your rate by at least 0.5-1%, plan to stay in the home past the break-even point, and the closing costs are reasonable relative to your savings.

What are typical refinance closing costs?

Closing costs typically range from 2-5% of the loan amount and may include application fees, appraisal, title insurance, and origination fees.

What is the break-even point?

The break-even point is the number of months it takes for your monthly savings to exceed the upfront closing costs. After this point, you begin saving money.

Should I refinance to a shorter term?

Refinancing to a shorter term (e.g., 30-year to 15-year) usually increases monthly payments but significantly reduces total interest paid. It depends on your cash flow and financial goals.

Educational Tool — Estimates for educational purposes only. Not financial advice.Disclaimer

Refinancing can lower your monthly payment, reduce your interest rate, or change your loan term. This calculator helps you compare your current mortgage with a refinanced loan to see if the savings justify the closing costs.

Refinance Calculator

Determine if refinancing your mortgage makes sense by comparing costs, savings, and break-even timeline.

February 2026 (current rate data)

Current Loan Balance

Current Interest Rate

Remaining Term (months)

Max 600 months (50 years)

New Interest Rate

New Loan Term

Closing Costs

Your Results

Monthly Savings

26 yr 7 mo

Current Monthly Payment

$1,766.95

New Monthly Payment

$1,447.86

Total Savings

$3,854.09

Break-Even Point

1 yr 4 mo

Closing Costs

$5,000.00

Wally's Analysis

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AI Disclosure

Wally's Analysis uses GPT-4o-mini for educational interpretations. AI responses are not personalized financial advice and may be inaccurate. All core calculations are deterministic — AI only interprets results.AI Transparency →

Accuracy Commitment

Industry-standard formulas vetted against IRS, SSA, BLS, CFPB. Client-side calculations. Regularly updated.

This calculator provides estimates for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making financial decisions.

Updated: February 2026 (current rate data) · Methodology

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