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 $2,818 for this scenario.

Key Takeaways

Mortgage Refinance Calculator estimates new loan amount of $350,000 and current payment (principal + interest) of $2,818 for this scenario.
Refinancing replaces the current loan at 8.5% with a new loan at 6%. The payment moves from $2,818 to $2,098 in principal and interest — saving $720 a month.
On these numbers the payment drops by $720 a month and the closing costs break even after about 9 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)

$2,818

New Payment (Principal + Interest)

$2,098

Monthly Savings

$720

Break-Even on Closing Costs

9 months

Lifetime Savings vs. Keeping Current Loan

$84,055

Result Chart

New Loan Amount

$350,000

Current Payment (Principal + Interest)

$2,818

New Payment (Principal + Interest)

$2,098

Monthly Savings

$720

Break-Even on Closing Costs

9 months

Key Facts

New Loan Amount	$350,000
Current Payment (Principal + Interest)	$2,818
New Payment (Principal + Interest)	$2,098
Monthly Savings	$720
Break-Even on Closing Costs	9 months
Lifetime Savings vs. Keeping Current Loan	$84,055

How This Estimate Works

Refinancing replaces the current loan at 8.5% with a new loan at 6%. The payment moves from $2,818 to $2,098 in principal and interest — saving $720 a month.
At $720 saved per month, the $6,000 in closing costs is recouped after about 9 months. The refinance only comes out ahead if you keep the new loan (and the property) longer than that.
Over the full life of both loans, keeping the current loan costs about $495,488 in remaining interest, versus $405,434 on the new loan — a lifetime saving of roughly $84,055 after closing costs, even with the new term.
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 8.5% to 6% worth it?

On these numbers the payment drops by $720 a month and the closing costs break even after about 9 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 9 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.