Mortgage Refinance Calculator
Estimate how much you could save by refinancing and find your break-even point
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LendingTree’s mortgage refinance calculator can help you decide if it’s time to replace your current mortgage with a new one. It costs money to refinance a home, and a refinance calculator can help you determine whether the benefit is worth the cost.
First, you’ll need to enter some information about your current home loan. After that, you’ll add information about the new mortgage you’d like to apply for.
Your current mortgage information
- Original amount: Start by entering how much you originally borrowed on the loan you’re refinancing.
- Loan start date: Next, add your current loan’s closing date. This information should be on your closing disclosure or monthly mortgage statement.
- Loan term: Select a 30- or 15-year term.
- Interest rate: Enter your current interest rate.
Your new loan information
- Loan term: Choose between a 30- or 15-year term.
- Interest rate: Choose a realistic refinance interest rate. You can base this on loan estimates you’ve received or current refinance rates.
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Closing costs: Our calculator automatically assumes refinance closing costs equal to 2% of your new loan amount
actual costs may range between 2% and 5% of your loan, but on average borrowers spent less than 1% of their refinance loan amount in closing costs in 2025, according to a study by LodeStar Software Solutions.
- Length of ownership: This is the number of years you plan to live in your home after the refinance.
What is refinancing and when is it worth it?
A refinance is a process that involves paying off your current mortgage and replacing it with a new home loan.
The most common reason to refinance your mortgage is to lower your interest rate, which can reduce your monthly payment.
Learn more about deciding when to refinance your home.
Should I refinance my mortgage?
If refinancing will give you lower monthly payments or lifetime savings on mortgage interest, it’s most likely a good financial move — as long as you aren’t planning to sell the home before you break even on the refinance.
| Your situation: | Does a refinance make sense? |
|---|---|
| You can lower your rate and stay in the home long enough to recover closing costs | ✅ Yes, refinancing could save you money in the long run |
| You want lower monthly payments | ✅ Yes, refinancing may reduce your monthly housing burden |
| You plan to move soon | Your savings may not outweigh your refinance costs |
| You’re extending your loan term mainly to reduce payments | You could pay more interest overall |
The boxes in our refinance calculator results show you at a glance where the refinance would save you money, and where it would cost you. Green results across the board are a great sign, but it’s okay if there’s some red sprinkled in.
Just be sure you have a specific goal in mind for the refinance, and that the green results align with your needs.
How to evaluate your break-even point results
Once you’ve entered the information above, our refinance calculator will show you your break-even point. Here’s how to evaluate the result:
| Break-even timing | Is refinancing worth it? | Reasoning |
|---|---|---|
| Break-even occurs well before you plan to move | Yes | You may have time to recover your refinance costs and benefit from your refinance’s monthly savings |
| Break-even occurs around the time you expect to move | Depends | Your savings may be limited |
| Break-even occurs after you plan to move | No | You may not recover your refinance costs |
Your break-even point is when you can truly begin benefiting from your refinance and the lower monthly payments that come with it.
Your refinance break-even point is a date in the future. If you own your home through this date, you’ll have fully recouped the closing costs you paid when you refinanced.
The simplest “back of the napkin” math you can use to evaluate whether a refinance is worth it is:
Closing costs ÷ monthly savings = Months until you break even
For example, if your monthly payments decrease by $200 once you refinance, but you paid $6,000 in closing costs, your break-even point is 30 months after closing ($6,000/$200 = 30 months). If you stay in the home for more than 30 months, you’ll save money by refinancing.
Questions to ask yourself before you refinance
Will you break even before you plan on moving?
The refinance will pay for itself as long as you continue to own the home past the break-even point. If you aren’t planning to stay that long, it’s not going to be worth it to refinance.
Are the savings significant?
Although you’ll have paid for the refinance as soon as you hit your break-even point, to start seeing significant savings, you’ll need to continue to own the home well after breaking even. However, what’s significant to you is something only you can decide.
That said, many homeowners won’t find refinancing worthwhile if they don’t remain in the home at least one full year past the break-even point.
What is your number one goal for this refinance?
Make sure that your refinance loan will achieve your goals. If you’re unsure about what goals you can achieve, the next section lists some common ones.
Common reasons to refinance
Assuming you’ll break even, a refinance generally makes sense if:
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You can lower your interest rate.
Besides the savings on your monthly payment, a lower rate can save you thousands of dollars in interest charges over the life of your loan. -
You want to pay off your loan faster.
If you can swing the higher payment, switching from a 30-year to a 15-year mortgage means you’ll be mortgage-free much faster. -
You want to switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.
If your ARM rate is going to adjust soon, refinancing to a fixed-rate loan may give you peace of mind. It can also make budgeting easier, since you’ll know exactly what to expect each month. -
You want to tap some of your home equity.
Converting some of your home equity to cash with a cash-out refinance can help you pay off credit card balances or make improvements that will increase your home’s value. -
You want to remove someone from the mortgage.
If you’re going through a divorce and one party wants to remain in the house, you may need to remove the other from the mortgage. And while it’s theoretically possible to remove someone’s name from a mortgage without refinancing, it can be complicated. In most cases, a refinance is the simplest solution. -
You want to stop paying FHA mortgage insurance.
If you currently have a mortgage insured by the Federal Housing Administration (FHA), you’re on the hook for annual FHA mortgage insurance premiums. The most common way to get out of this obligation is to refinance into a conventional loan.
How do I find the best refinance rates?
The answer is simple: shop around. Borrowers who use LendingTree to compare loan offers and choose the most competitive rate can save thousands of dollars in interest charges, according to LendingTree data.
But refinancing isn’t only about finding a lower rate — it’s also about finding the right loan for your financial goals. LendingTree helps you compare personalized refinance offers from multiple lenders in one place, so you can evaluate rates, monthly payments and closing costs side by side.
Enter your information once and view offers from multiple lenders in minutes!
When banks compete, you win.
LendingTree picks for the best refinance lenders
| Lender | User ratings | Best for | |
|---|---|---|---|
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(1455)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| Overall refinance | |
 | User reviews coming soon | Online refinance | |
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(952)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| Rate transparency | |
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(56126)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| Loan variety |
Learn more about how we chose our best refinance lenders.
How does refinancing a mortgage work?
Here’s a quick overview of how to refinance a mortgage:
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Pick your financial goal.
Do you want to change your interest rate, loan term or both? Are you looking for lower payments or a faster payoff? -
Decide on a loan program.
Choose a government-backed refinance loan if you need to refinance with bad credit, or a conventional loan if you have a high credit score and more than 20% equity in your home. -
Shop for a lender and lock your rate.
Once you’ve reviewed loan estimates and chosen the best lender for your needs, ask your lender for a mortgage rate lock. Mortgage rates change daily and your rate isn’t guaranteed until it’s locked in. -
Gather your financial paperwork.
In most cases, you’ll need to provide documentation of your income, employment and debts. This usually means current pay stubs, W-2s and bank statements. You’ll also need information about the loan you’re paying off. -
Get your home appraised.
Your refinance lender will want to evaluate your home’s current value. So, unless you’re eligible for an appraisal waiver, you should spruce up your house in preparation for a home appraisal. -
Finalize your closing disclosure and enjoy your savings.
Once your loan is approved, you’ll receive a closing disclosure three business days before you sign. If everything looks correct, sign your papers and you’re all done. And if you change your mind, you can exercise your right of rescission, which gives you three days to cancel the mortgage contract.
“Streamline” refinances — like FHA streamline refinance loans, VA interest rate reduction refinance loans (IRRRLs) and USDA streamlined assist loans — are typically much faster and simpler than other refinances. They don’t involve a new home appraisal nor a review of your credit score, income or debt.
What are some alternatives to a refinance?
If the break-even point on a refinance doesn’t work with your plans, consider one of these alternatives:
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Recast your loan.
If you have a lump sum of cash on hand, your current lender may allow you to put that money toward reducing your principal balance. They’ll then recalculate your monthly payments, which results in lower payments going forward. This process is known as recasting your mortgage and — unlike a refinance — comes with no closing costs or mountains of paperwork (though you may have to pay a recast fee). -
Switch to biweekly payments.
Most lenders offer the option to set up biweekly payments, which means paying half of your monthly mortgage payment every other week. This simple strategy can reduce your interest charges by tens of thousands of dollars and take years off your mortgage repayment timeline. -
Ask your lender to remove PMI.
You can get rid of your monthly private mortgage insurance (PMI) charges if your home’s value has increased enough to push your home equity over the 20% threshold.
Frequently asked questions
There’s no specific limit to how many times you can refinance. However, many loans do come with waiting periods (known as seasoning requirements) that set a practical limit on how frequently you can refinance.
You may see refinancing advertisements that offer the chance to “skip” a mortgage payment. Don’t be fooled — the reality is that, although no payment is due the month after a refinance closing, you’re not actually saving a penny. You will still be charged principal and interest that accrued during that month; you just won’t see the bill until later.
Interest is always paid in arrears, that is, a month behind. So, someone who closes on their refinance on May 10 wouldn’t make a mortgage payment until July 1. The July payment will cover the interest accrued in June; the days between the closing and the first month of the new refinance (May 10 to May 31) will be paid for in the form of prepaid interest at closing.
- Conventional refinance loans. Fannie Mae and Freddie Mac set the guidelines for the most popular loan type: conventional loans. You’ll need at least a 620 credit score to refinance into a conventional loan, and you won’t have to pay for mortgage insurance if you have at least 20% home equity.
- FHA refinance loans. Homeowners with scores as low as 500 may qualify to refinance with an FHA loan. All FHA loans come with two forms of FHA mortgage insurance.
- VA refinance loans. Eligible military borrowers can refinance using a loan backed by the U.S. Department of Veterans Affairs (VA). VA borrowers can also access up to 90% of their home’s value with a VA cash-out refinance.
- USDA refinance loans. Borrowers in rural areas who have a current USDA loan can lower their payment using a USDA rate-and-term refinance or streamlined assist refinance, but they don’t have a cash-out option.
The cost to refinance a mortgage is just what you pay in closing costs. These usually amount to about 2% to 5% of your mortgage amount.
If you just closed on your home at a high interest rate, you’re probably wondering how soon you can refinance your mortgage. If you have a conventional loan, you can refinance as soon as you’d like — unless you’re getting a cash-out refinance, which requires a 12-month waiting period. However, if you want to refinance a government-backed loan, you’ll need to wait up to a year.