Mortgage Refinance Calculator

When Does Refinancing Make Sense? A 2024 Guide

Refinancing your mortgage can save thousands, but timing and costs matter. Our calculator above shows your potential savings, but here’s what to consider:

1. The "Break-Even" Rule

Divide your closing costs by your monthly savings. If you plan to stay in the home longer than this period (e.g., 20 months), refinancing pays off.

2. Interest Rate Drops

A 1%+ rate reduction is often worth it. For example:

• Old rate: 4.5% → New rate: 3.5% = $200/month savings on a $250K loan.
• Use our calculator to compare your scenario.

3. Shortening Your Loan Term

Switching from a 30-year to a 15-year mortgage saves interest but raises payments. Calculate both options above.

When NOT to Refinance

• Planning to move soon? You might not break even.
• Credit score dropped? You may not qualify for the best rates.

Pro Tip: Compare lenders for the lowest fees. Even small rate differences add up!