Summary
See monthly payment change and months to recover closing costs.
Calculation details
Both payment streams use standard amortization. Break-even divides closing costs by monthly savings when savings are positive.
Formula
Payment = P × r / [1 − (1 + r)^−n]; break-even months = closing costs ÷ monthly savings.
Worked example
Refinance $250,000 remaining
A lower rate reduces the monthly payment; break-even depends on closing costs.
How it works
Enter current loan terms, new rate and term, and closing costs.
Frequently asked questions
What does this refinance comparison estimate include?
It compares amortizing payments only and ignores taxes, insurance, and lender-specific fees beyond entered closing costs.
When is this refinance comparison most useful?
When estimating break-even months after closing costs before talking to a lender.
Are displayed values rounded?
The formula keeps full numeric precision. Values are rounded only when formatted for display.
Can actual results differ?
Yes. Points, escrow changes, credit qualifications, and adjustable features alter real savings.