Mortgage Refinance Calculator 2026
The monthly saving is the headline. The break-even month and the term reset are the story.
Whether refinancing pays — monthly saving, the exact break-even month for your closing costs, and the lifetime verdict that catches the term-reset trap the payment comparison hides. July 2026 rates preloaded.
July 2026 averages — your quote depends on credit, LTV and lender.
One division decides most refinances
The test
Closing costs ÷ monthly saving = months to break even. The example: $300,000 at 7.5% with 27 years left costs $2,162/mo; at 6.5% over 30 years it's $1,896 — $266 saved, so $6,000 of costs repay in 23 months. Stay longer than that and every further month is profit; sell or refinance again sooner and the fees were burned.
The benchmarks
Under 24 months: clearly good. 24–36: good if you're settled. 36–60: needs a long horizon. Over 60: the rate drop probably isn't big enough yet. The chart above shows the two cumulative-cost lines crossing at your exact break-even.
Same payment problem, three different answers
| Option ($300k, from 7.5%/27yr) | Payment | Total interest ahead |
|---|---|---|
| Keep current loan | $2,162 | $400,553 |
| Refi 6.5% × 30 yrs | $1,896 | $382,633 |
| Refi 6.5% × 27 yrs (match) | $1,955 | ≈$333,000 |
| Refi 5.9% × 15 yrs | $2,515 | $152,770 |
The 30-year reset maximizes monthly relief and minimizes lifetime gain; matching the remaining term keeps the timeline honest; the 15-year turns the refinance into a quarter-million-dollar interest saving for $353/mo more. Pick by what the budget is actually for.
2–6% of the loan — and very negotiable
The stack: lender origination (0.5–1%), appraisal ($400–700), title insurance and escrow (the big variable — shop it separately), recording taxes (state-dependent), plus prepaid interest and escrow funding. Three lender quotes routinely differ by thousands on the same rate — the Loan Estimate form makes them directly comparable, section by section. 'No-cost' offers just move the money into the rate (+0.25–0.5pt) or the balance; run both versions here and let the break-even decide. If you refinanced within the last few years, ask about a re-issue rate on title insurance — often 40% off.
Where refinances quietly lose money
The term reset: 27 years → 30 years hands back most of the rate win as three extra years of payments — match the term or keep paying the old amount. Serial refinancing: each round pays closing costs again; three refinances in six years can burn $18,000 chasing quarter-points. Cash-out creep: "while we're at it" borrowing converts consumer spending into 30-year secured debt. And the meta-trap: refinancing a sub-4% pandemic loan at 2026 rates — for half of American mortgage holders the right answer is simply keep the loan forever.
❓ Frequently asked Frequently asked questions
When is refinancing worth it?
When you'll stay past break-even (costs ÷ monthly saving). The $300k example: $266/mo saved, 23-month break-even. ~1pt of rate drop is the usual trigger.
What does it cost?
2–6% of the loan, often $5,000+. 'No-cost' deals hide it in the rate (+0.25–0.5pt).
What's the term-reset trap?
27 yrs → 30 yrs of payments: $266/mo saved but only ~$18k lifetime. Match the remaining term or overpay to the old amount.
Should I take the 15-year?
If $353/mo more fits: total interest drops ~$248k on the example. 15-yr rates run ~0.6pt below 30-yr.
Refinance my 3% pandemic loan?
No — at ~6.5% market rates that trade is strictly worse. 2026 candidates: 7–8% loans from 2023–25, FHA-to-conventional, ARM resets.
Where these figures come from
Rates and process guidance from the standard authorities.
- Current rates — Freddie Mac Primary Mortgage Market Survey.
- Closing costs & Loan Estimates — CFPB — Owning a Home toolkit.
- Refinance process — Freddie Mac — Refinancing.
Last checked: July 2026. Your quoted rate depends on credit score, loan-to-value and lender overlays.
Select the question that matches where you are right now.
Your result is the refinance decision in three numbers: the monthly relief, the month the fees pay off, and the honest lifetime verdict.
If break-even lands inside your realistic stay horizon AND the lifetime verdict is positive, proceed to quotes. One green number alone isn't a case.
A quote. Your credit, LTV and lender pricing set the real rate — this page tells you what rate to hold out for.
Standard amortization, both cost treatments, no teaser assumptions. All calculations run in your browser.
Four numbers own the outcome.
Under 0.5pt rarely survives the fees; a full point usually does.
The most-ignored input — moving in year two makes almost every refinance a loss.
Decides whether $266/mo of relief is also a lifetime win or mostly an extension.
$4,000 vs $8,000 of costs doubles the break-even. Shop it.
Squeezing the quote.
Same-day quotes from three lenders, then negotiate line items — title and origination move the most.
760+ unlocks the advertised rate; a 30-day cleanup can beat months of rate-watching.
After closing, keep the old payment going — the extra principal defeats the term reset automatically.
The refinance sits inside the bigger housing picture.