Three numbers decide the comparison
You need the balance, the rate, and the years left on the current loan. The statement is a better source than memory.
The new side needs a quoted rate, a term, and a closing-cost figure. This site's refinance tool adds those costs to the balance. Paying them in cash would make the new loan smaller than the model.
Payment and interest can move in opposite directions
Stretching the remaining term back to 30 years often cuts the required payment. It can also increase the interest you pay if you keep the loan to the end.
The result shows both. If the new payment is not lower, break-even is omitted rather than shown as a nonsense number.
| Question | Where it shows |
|---|---|
| Is the payment lower? | Monthly savings |
| When do costs come back? | Break-even, if savings are positive |
| Does the full term cost less interest? | Interest on each loan |
Calculators
Related guides
Sources
Common questions
Does this include cash out?
No. Cash-out starts from a larger balance. Read that guide and raise the balance yourself if you are testing it.
Are the rates current?
No. Type the rate on your statement and the rate on a loan estimate.