MortgageIQ
Avg rates as of July 23, 2026:30-yr fixed: 6.58%15-yr fixed: 5.96%FHA 30-yr: 6.83%VA 30-yr: 6.11%Source: Freddie Mac PMMS · Updated weekly (Thursdays)

For educational purposes only. Not financial advice. Always consult a licensed mortgage professional. Read disclaimer

Mortgage Refinance Calculator

Find out if refinancing your mortgage will save you money. See monthly savings, break-even point, and total interest comparison.

You'll save $374/month — break even in 14 months

Your Loan Details

Current Loan

Current Loan Balance$350,000
Current Interest Rate7.5%
$2,586.47

Auto-calculated — edit to override

Remaining Term25 years

New Loan

New Interest Rate6.5%
Closing Costs$5,000

Your Situation

How Long Until You Sell or Pay Off?7 years
Your Tax Rate28%
Refinance Now

You'll save $374/month by refinancing

You'll break even in 14 months (September 2027)

Current Monthly Payment

$2,586.47

Save $374.23/mo

New: $2,212.24

Break-Even Point

14 months

September 2027

Total Savings Over 7 Years

$26,435

↑ Net savings

Total Interest Change (Life of Loan)

-$20,465

$425,941 → $446,406

You pay more total interest because you're resetting from a 25-year remaining term to a new 30-year loan. You save money monthly but pay longer.

Monthly savings: +$374 ✅

Break-even: 14 months ✅

Term change: 25yr → 30yr ⚠️

Why is total interest higher?

Your current loan has 25 years remaining. Your new loan resets to 30 years. Even at a lower rate, 5 extra years of payments means more total interest paid.

Monthly savings:+$374/month ✅
Total interest change:-$20,465 over full loan term ⚠️
Break-even point:14 months ✅

This refinance makes sense if you plan to stay less than 30 years and value the monthly cash flow savings over minimizing total interest.

TIP: Consider a 20 or 25-year refinance term to keep monthly savings while reducing total interest paid.

Current Payment
New Payment
Principal
$398.97
Principal
$316.40
Interest
$2,187.50
Interest
$1,895.83
Total
$2,586.47
Total
$2,212.24
Monthly Savings

$374.23

vs current payment

Annual Savings

$4,490.77

vs current payment

Closing Costs
$5,000.00
Months to Recoup
14 months

YES — Refinance

  • • Monthly savings: $374.23/month
  • • Break-even: 14 months
  • • You'll save $374 per month and break even in 14 months — well before your 7-year timeline.

Key consideration: You plan to stay 7 years (84 months) but break-even is 14 months — you will recoup closing costs.

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Monthly savings

Break-even in 14 mo

$374/mo

Frequently Asked Questions

When does it make sense to refinance your mortgage?▾
Refinancing makes sense when you can lower your interest rate by at least 0.5–1%, plan to stay in the home long enough to recoup closing costs, and your credit score qualifies for better terms. Our calculator compares your current loan to a new one and shows exactly when you'll break even.
How do I calculate my refinance break-even point?▾
Divide your closing costs by your monthly payment savings. For example, $5,000 in closing costs and $200/month in savings means break-even at 25 months. Our calculator factors in upfront vs. rolled-in closing costs and shows the break-even point on an interactive chart.
Is a cash-out refinance a good idea?▾
A cash-out refinance can fund home improvements or debt consolidation at lower rates than credit cards, but it increases your loan balance and monthly payment. Use our cash-out preset to model taking $50K out and see how it affects your break-even and total savings.
How much does it cost to refinance a mortgage?▾
Refinance closing costs typically range from 2–6% of the loan amount, or $2,000–$10,000 for most homeowners. Costs include appraisal, title insurance, origination fees, and recording fees. You can pay upfront or roll costs into the new loan balance.
Should I refinance to a 15-year or 30-year mortgage?▾
A 15-year loan builds equity faster and saves total interest but raises monthly payments. A 30-year loan maximizes monthly savings. Use our 'What if I do a 15-year loan?' preset to compare. The right choice depends on your budget and how long you plan to stay.

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Rate defaults based on Freddie Mac PMMS. Property tax rates from ATTOM Data. FHA MIP rates from HUD.gov. VA funding fees from VA.gov. Last updated July 2026. Learn about our data sources.