Compare your current loan with a refinance offer: new payment, monthly saving and break-even time.
monthly saving
How to use this tool
Remaining balance, current rate and months left — not the original loan amount or term.
New rate, new term and the closing costs you would pay.
Monthly saving is the payment difference; break-even is closing costs divided by that saving.
A longer term can cut the monthly payment while raising total interest — compare both.
Formula & worked example
$200,000 remaining at 6% over 240 months: payment about $1,432.86. Refinanced at 4% over 240 months: about $1,211.96 — saving about $220.90 per month, recovering $3,000 of closing costs in about 13.6 months.
Limitations — read this before you rely on it
This is a payment comparison, not a loan offer: it excludes taxes, insurance, PMI, points, prepayment penalties and any cash-out, and it assumes fixed rates and on-time payments for the full term. A refinance that restarts a longer term can cost more overall even with a lower payment.
Frequently asked questions
Usually when the monthly saving recovers the closing costs well before you plan to move or pay off the loan, and the total interest does not rise more than the saving is worth.
Closing costs divided by monthly saving. After that many months, the saving has repaid the cost of refinancing.
Yes — stretching the same balance over a longer term lowers each payment but adds months of interest, so total paid can rise.
Comparing the same remaining term isolates the rate effect. Also compare your actual offered term, since that is what you would sign.
No — enter the total closing costs as one figure. Ask the lender for a full breakdown before deciding.