Should I Refinance My Mortgage?

Refinancing makes sense when your break-even month lands well before you plan to sell or refinance again. Use the calculator to find that month.

1Your loan

Loan balance

Current rate

Current term

New rate

New term

Closing costs

Plan to stay (years, optional)

Compare the break-even month against how long you plan to stay in the home.

2Your break-even

Run the calculator to see your break-even month.

The one question that decides it

Ask yourself: how long will I stay in this home? If the break-even month from the calculator is comfortably before your move, refinancing usually makes sense. If you might move sooner, the fees may never pay back.

How long until I break even?

Break-even is closing costs divided by your monthly savings. Bigger rate drops and lower fees shorten it; smaller drops and higher fees lengthen it. Enter your numbers above and read the month directly.

Is a 15-year better than a 30-year refinance?

A 15-year term pays far less interest and often carries a lower rate, but the payment is higher. If your goal is saving interest and you can afford the payment, 15-year breaks even on interest quickly. If your goal is lowering the monthly bill, 30-year may fit better. Both are valid — the calculator shows the payment for each.

Does refinancing actually save money?

Only if you stay past break-even. Before that month, you are still underwater on the fees. After it, the lower payment is pure saving every month. The calculator’s "net saved if you stay N years" line makes this explicit.

Decision checklist. 1) Find your break-even month. 2) Estimate how long you will stay. 3) If stay ≫ break-even, refinance. 4) Confirm fees with your lender’s Loan Estimate.

Not mortgage advice. RefiBreak provides arithmetic only. Local rules, credit and fees vary — confirm with your lender and a qualified advisor.

Frequently asked questions

When does refinancing make sense?

When your break-even month is well before you plan to sell or refinance again, and the lower payment helps your cash flow.

What if I plan to move soon?

Then a long break-even period may mean you never recover the costs. A no-closing-cost refinance trades fees for a higher rate instead.

Should I wait for rates to drop more?

No one knows future rates. This calculator shows the math for the rate you enter today; you decide whether to act now or wait.

What to do after you calculate

If the break-even month sits well before your planned move, gather a Loan Estimate from your current servicer and one or two competitors. Compare the closing costs line by line, and check whether a no-closing-cost option with a slightly higher rate beats paying fees up front. The math here tells you whether refinancing is worth pursuing; the Loan Estimate tells you the exact price.