Refinance Calculator
Should you refinance? Calculate your monthly savings, break-even point, and total interest saved.
🏦 Current Loan
🔄 New Loan
Typically 2–3% of loan balance
Save $231/mo — Break even in 26 months
Short break-even — refinancing likely makes sense.
Monthly Payment Comparison
Current Payment
$2,253
27 yrs remaining
New Payment
$2,023
30 yr term
Refinance Analysis
Break-Even Point
Months until monthly savings cover closing costs
26 months (2.2 yrs)
Closing Costs
Out-of-pocket at closing
$6,000
Total Interest — Current Loan
Over remaining 27 years
$410,108
Total Interest — New Loan
Over 30 years
$408,142
Lifetime Interest Difference
Total interest current vs. new loan
Save $1,966
Net Savings (after closing costs)
Refinancing costs more than it saves
$4,034
How break-even is calculated
Break-Even Months = Closing Costs ÷ Monthly Savings
If you keep the property longer than the break-even period, refinancing saves money. If you plan to sell sooner, the closing costs may not be recouped.
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Refinance FAQs
When does refinancing make sense for a rental property?
Refinancing makes sense when the monthly payment savings justify the closing costs within your expected holding period. A break-even under 24 months is generally considered favorable. Also consider: rate-and-term refi to lower payments, cash-out refi to access equity for additional purchases, or shortening the term to build equity faster.
What is a typical break-even point?
Most financial advisors consider a break-even under 36 months (3 years) to be favorable for a refinance. If you plan to hold the property for 10+ years, even a 48-month break-even can make sense. Properties you plan to sell in 1–2 years rarely benefit from refinancing.
What are typical closing costs for a refinance?
Refinance closing costs typically run 2–3% of the loan balance. On a $300,000 loan that's $6,000–$9,000. Costs include origination fees, appraisal, title search, recording fees, and prepaid interest. Some lenders offer 'no-closing-cost' refis that roll costs into a slightly higher rate.
Should I roll closing costs into the new loan?
Rolling closing costs into the loan eliminates out-of-pocket expense at closing but increases your loan balance and the total interest you pay. Use this calculator's toggle to compare both scenarios. If you have cash reserves, paying out of pocket and keeping the lower balance usually saves more over the life of the loan.
Does refinancing reset my amortization clock?
Yes — if you refinance a 30-year mortgage 3 years in and take another 30-year term, you're extending the payoff date. That often means more total interest even at a lower rate. The 'Total Interest' comparison in this calculator accounts for that: compare current vs. new total interest to see the full picture.