Mortgage Refinance Calculator

Compare your current mortgage with a refinance: new payment, monthly savings, break-even month, and the true lifetime cost including the term restart.

Published: 2026-10-03

Updated: 2026-10-03

Quick Answer

Mortgage Refinance Calculator estimates new loan amount of $350,000 and current payment (principal + interest) of $2,474 for this scenario.

Key Takeaways

Mortgage Refinance Calculator estimates new loan amount of $350,000 and current payment (principal + interest) of $2,474 for this scenario.
Refinancing replaces the current loan at 7% with a new loan at 6.75%. The payment moves from $2,474 to $2,270 in principal and interest — saving $204 a month.
On these numbers the payment drops by $204 a month and the closing costs break even after about 30 months. It is generally worth it if you expect to keep the property and the loan well past that point — and worth double-checking against the lifetime interest comparison, not just the monthly payment.

Calculation Output

New Loan Amount

$350,000

Current Payment (Principal + Interest)

$2,474

New Payment (Principal + Interest)

$2,270

Monthly Savings

$204

Break-Even on Closing Costs

30 months

Lifetime Savings vs. Keeping Current Loan

-$81,115

Result Chart

New Loan Amount

$350,000

Current Payment (Principal + Interest)

$2,474

New Payment (Principal + Interest)

$2,270

Monthly Savings

$204

Break-Even on Closing Costs

30 months

Key Facts

New Loan Amount	$350,000
Current Payment (Principal + Interest)	$2,474
New Payment (Principal + Interest)	$2,270
Monthly Savings	$204
Break-Even on Closing Costs	30 months
Lifetime Savings vs. Keeping Current Loan	-$81,115

How This Estimate Works

Refinancing replaces the current loan at 7% with a new loan at 6.75%. The payment moves from $2,474 to $2,270 in principal and interest — saving $204 a month.
At $204 saved per month, the $6,000 in closing costs is recouped after about 30 months. The refinance only comes out ahead if you keep the new loan (and the property) longer than that.
One honest catch: although the monthly payment drops, restarting a fresh loan term stretches the debt out, so total interest rises from about $392,118 remaining on the current loan to $467,234 on the new one — roughly $81,115 more over the full life after closing costs. The monthly win is real; the lifetime win is not, unless you invest the difference or keep paying extra principal.
Taxes, insurance, and any HOA dues continue either way, so this comparison isolates the loan itself. Closing costs typically run 2–5% of the new loan amount; if a lender offers a 'no-cost' refinance, the cost is usually buried in a higher rate instead.

FAQ

Is refinancing from 7% to 6.75% worth it?

On these numbers the payment drops by $204 a month and the closing costs break even after about 30 months. It is generally worth it if you expect to keep the property and the loan well past that point — and worth double-checking against the lifetime interest comparison, not just the monthly payment.

How long until a refinance pays for itself?

Divide the closing costs by the monthly savings. Here that is about 30 months. Sell or refinance again before that month and the refinance lost money, however good the rate looked.

Does refinancing restart my loan term?

Usually yes — a new 30-year loan replaces whatever is left of the old one, which is a big reason a lower payment can still cost more total interest. Choosing a shorter new term (or paying the old payment amount on the new loan) keeps the rate benefit without stretching the debt back out.

How much do closing costs run on a refinance?

Commonly 2–5% of the loan amount, covering appraisal, title, origination, and recording fees. On the loan in this scenario that range would be roughly $7,000 to $17,500. Always compare lender offers on both rate and itemized costs, since a slightly higher rate with low costs often wins for shorter holds.

What changes with a cash-out refinance?

The new loan is bigger than the old balance, so the payment falls less (or rises) and you convert home equity into cash at mortgage rates. The break-even math is the same, but the extra borrowed amount also has to earn its keep — compare the rate on the cash-out portion against the debt or expense it replaces.