Free Refinance Calculator

Should You Refinance?

Enter your current loan details and the new rate you've been offered. Instantly see your monthly savings, the break-even point, and total lifetime savings — for any loan type.

6.11%
30-yr fixed avg
Freddie Mac, Mar 2026
6.73%
30-yr refi avg
Bankrate, Mar 2026

Refinance Savings Calculator

Refinance Details

Current Loan
Current Balance remaining principal
$
Current Interest Rate
%
Remaining Term 20 yrs left
mo
New Loan
New Interest Rate
%
New Loan Term
Cash-Out Amount optional
$
Closing Coststypically 2–5% of loan
$

Enter your current and new loan details to see if refinancing saves you money

When Does Refinancing Make Sense?

Refinancing replaces your existing loan with a new one — ideally at a lower rate or better terms. The key question: do the savings outweigh the costs? Here's a quick guide to common refinance scenarios:

ScenarioVerdictWatch Out For
Rate dropped 1%+Almost always worth itCalculate break-even first
Credit score improved 50+ ptsLikely worth itShop 3+ lenders
ARM → Fixed rateWorth it for stabilityRate may be slightly higher
Shorten term (30yr → 15yr)Great if cash flow allowsHigher monthly payment
Extend term for lower paymentOnly if necessaryMuch more total interest
Cash-out for home improvementsCan make senseLarger loan, higher payment
Cash-out for debt consolidationRisky — evaluate carefullySecured by home

The Break-Even Rule

The most important number in any refinance decision is the break-even point — how many months until your cumulative savings exceed your closing costs.

Break-Even (months) = Closing Costs ÷ Monthly Savings
Example: $4,800 costs ÷ $240/mo savings = 20 months

General rule of thumb: if your break-even is under 24 months and you plan to stay in the home (or keep the loan) longer than that, refinancing is likely worth it. If you're planning to move or pay off the loan in under 2 years, it usually isn't.

Mortgage Refinance: Rate-and-Term vs. Cash-Out

Rate-and-Term Refinance

The most common type — you simply replace your loan with a new one at a better rate or different term. No cash is taken out. Rates are typically 0.25–0.5% lower than cash-out refis. This is the best option if your goal is to lower your payment or pay off the loan faster.

Cash-Out Refinance

You borrow more than you owe and receive the difference in cash. Useful for home improvements, which can increase home value, or paying off high-interest debt. Be careful: your home is collateral, and you're extending how long you're in debt. According to the CFPB, cash-out refis require careful consideration of the long-term cost.

Current Refinance Rates (March 2026)

Loan TypeAvg Refi RateSource
30-yr fixed mortgage refi6.73%Bankrate
15-yr fixed mortgage refi6.12%Bankrate
30-yr FHA refi6.50%Bankrate est.
Auto loan refi5.5–7%Bankrate / RefiJet
Student loan refi (private)5–8%Credible / SoFi
Personal loan refi6–18%Varies by credit

Sources: Bankrate Refinance Rates. Rates as of March 2026. Your rate depends on credit score, LTV, and lender.

5 Mistakes to Avoid When Refinancing

  • Not calculating the break-even point. Always divide closing costs by monthly savings before deciding.
  • Resetting to a 30-year term after 10 years of payments. You're adding 10 years of interest. Consider a 20-year refi instead.
  • Ignoring prepayment penalties. Some loans charge 2–5% of the balance if paid off early. Check your current loan documents first.
  • Only shopping one lender. Refi rates vary by 0.5–1% between lenders for the same borrower. Always get at least 3 quotes.
  • Using cash-out for consumption. Tapping home equity for vacations or cars converts unsecured debt risk into secured (your home). Only use cash-out for value-adding improvements.
FAQ

Refinance Calculator — Common Questions

When does it make sense to refinance?
Refinancing makes sense when: (1) you can lower your rate by at least 0.5–1%, (2) your break-even point is under 24–36 months, and (3) you plan to keep the loan past break-even. Other good reasons: your credit score improved significantly, rates dropped since you got the loan, you want to switch from an ARM to a fixed rate, or you want to shorten the term and pay less total interest.
What is a break-even point and why does it matter?
Break-even is how many months until cumulative monthly savings exceed your closing costs. Example: $4,000 closing costs ÷ $200/month savings = 20-month break-even. If you sell or refinance again before 20 months, you lose money. If you stay 5+ years, you come out way ahead. Always calculate break-even before committing to a refinance.
How much does it cost to refinance a mortgage?
Mortgage refinancing typically costs 2–5% of the loan amount — roughly $3,000–$8,000 on a $250K loan. Costs include: origination fee (0.5–1% of loan), appraisal ($300–$600), title search & insurance ($700–$1,500), recording fees ($25–$250), and prepaid items (taxes, insurance). No-closing-cost refis roll costs into the rate — still check the math.
Should I extend my loan term when refinancing?
Extending the term lowers your monthly payment but increases total interest paid — sometimes dramatically. Example: refinancing a $280K mortgage with 20 years left into a new 30-year loan at a lower rate might lower monthly payment by $300, but you'd pay an additional 10 years of interest. A 15-year refinance often saves far more total despite a higher monthly payment.
What is a cash-out refinance?
A cash-out refinance replaces your existing mortgage with a larger one, and you receive the difference in cash. Example: home worth $400K, owe $250K → cash-out refi to $320K → receive $70K cash. Useful for home improvements, debt consolidation, or emergencies. The new loan is larger, so compare total cost carefully. Rates are typically 0.25–0.5% higher than rate-and-term refis.
Can I refinance an auto or student loan?
Yes. Auto refinancing is straightforward — most lenders process it in 1–3 days. It makes sense if your credit improved or rates dropped since purchase. For student loans: you can refinance both federal and private loans, but refinancing federal loans into private permanently removes access to IDR plans and PSLF. Only do it if you're certain you won't need those federal protections.

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