Refinance Analysis
Current Mortgage
New Refinance Loan
Refinance Analysis Results
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Key Financial Metrics
Lifetime Cost Comparison
Cumulative Savings Over Time
Negative values indicate closing costs not yet recovered
Important Considerations
If you plan to move before the breakeven point, refinancing may not be worth it. Breakeven is when your monthly savings equal the closing costs paid.
Paying closing costs in cash gives you immediate savings. Rolling costs into the loan increases your balance and long-term interest, but requires no upfront cash.
A new 30-year loan extends your debt. Consider refinancing to the same or shorter term to avoid being in debt longer, even if the monthly payment is higher.
When to Refinance
Good Reasons to Refinance
- Lower interest rate: Typically worth it if you can reduce rate by 0.5-1%+
- Lower monthly payment: Free up cash flow for other financial goals
- Shorten loan term: Pay off mortgage faster, save on total interest
- Switch loan type: ARM to fixed rate for payment stability
- Remove PMI: If home value increased and equity > 20%
- Cash-out refinance: Access equity for home improvements or debt consolidation
When NOT to Refinance
- Won't reach breakeven before moving or selling
- Credit score dropped significantly (won't qualify for best rates)
- Closing costs are excessive (> 5% of loan amount)
- Extending term significantly when nearing payoff
- Using it to fund unnecessary spending