See if refinancing makes sense by calculating monthly savings, break-even point, and total cost savings
• Consider closing costs carefully
• Calculate break-even point
• Don't extend loan term unnecessarily
• Compare multiple lenders
• Factor in your timeline
Our free loan refinance calculator helps you determine if refinancing makes financial sense. Whether you're considering refinancing your mortgage, auto loan, or other debt, this calculator shows you the monthly savings, break-even point, and total cost savings to make an informed decision.
Refinancing typically makes sense when you can secure a significantly lower interest rate, want to change your loan term, need to consolidate debt, or want to switch from an adjustable to a fixed rate. However, the decision depends on closing costs, your timeline, and the potential savings.
The break-even point is when your monthly savings equal the total closing costs of refinancing. If you plan to stay in your home or keep the loan longer than the break-even period, refinancing makes financial sense. If you might move or refinance again before break-even, it may not be worth it.
Don't refinance just to lower your monthly payment if it extends your loan term significantly. Avoid refinancing too frequently, as this can increase your total costs. Don't ignore closing costs or focus only on the interest rate without considering the full picture.
Before refinancing, consider alternatives like making extra payments, loan modification, or simply waiting for better rates. Sometimes the best financial decision is to keep your current loan and focus on paying it down faster.