Refinancing Calculator

Generally, refinancing makes sense if you can reduce your interest rate by at least 0.5-1% - lower rates mean faster break-even periods

Consider the break-even point carefully - if you plan to move before reaching it, refinancing may not be worthwhile despite lower payments

Closing costs typically range from 2-5% of your loan amount - shop around as different lenders offer varying fee structures

A shorter loan term usually means lower total interest but higher monthly payments - choose based on your budget and retirement timeline

Your credit score significantly impacts the rates you'll be offered - improving your score before applying can save thousands

Cash-out refinancing lets you borrow against home equity but increases your loan balance - use only for value-adding investments or debt consolidation

Rate-and-term refinancing changes only your interest rate or loan term without increasing the loan amount - typically the most cost-effective option

Consider refinancing when mortgage rates drop, your credit score improves, or you want to switch from an adjustable to fixed-rate mortgage

No-closing-cost refinancing means higher interest rates to offset fees - calculate long-term costs to determine if it's truly beneficial

Time your refinancing strategically - interest rates fluctuate, and waiting for rate drops can increase your savings potential