Mortgage Refinance Calculator 2026
See exactly how much you'll save by refinancing — monthly savings, total interest saved, and your break-even point. Current 30-year rate: 6.10% (Feb 2026).
QUICK ANSWER: Refinance Savings at Today's 6.10% Rate
7.25% → 6.10% on $300K = $189/mo savings ($2,268/yr). Break-even: ~3.9 years. If you have a rate above 6.75% and plan to stay 5+ years, refinancing likely makes sense. Closing costs typically run $6,000-$9,000 on a $300K loan.
Refinance Savings Examples — Refinancing to 6.10% (Feb 2026)
| Current Rate | New Rate | Balance | Monthly Savings | Annual Savings | Break-Even |
|---|---|---|---|---|---|
| 7.50% | 6.10% | $300K | $241 | $2,892 | 3.1 yrs* |
| 7.25% | 6.10% | $300K | $189 | $2,268 | 3.9 yrs* |
| 7.00% | 6.10% | $300K | $148 | $1,776 | 5.1 yrs* |
| 6.75% | 6.10% | $300K | $107 | $1,284 | 7.0 yrs* |
| 7.25% | 6.10% | $400K | $252 | $3,024 | 3.6 yrs* |
| 7.25% | 6.10% | $500K | $315 | $3,780 | 2.9 yrs* |
*Break-even assumes $7,500 closing costs. Actual break-even = closing costs ÷ monthly savings.
Compare refinance rates from 50+ lenders — some below 6.10%
No credit impact. Get your personalized refinance rate in 2 minutes.
Mortgage Calculator
Monthly Payment
$1,616
Payment Breakdown
Loan Summary
Understanding Your Mortgage
Principal vs Interest
In the early years of your mortgage, most of your monthly payment goes toward interest. As you pay down your loan, more goes toward principal.
Extra Payments
Making even small additional payments can significantly reduce your loan term and save thousands in interest over the life of your loan.
Amortization
An amortization schedule shows how your loan balance decreases over time as you make payments, eventually reaching zero at the end of your loan term.
How to Calculate Your Refinance Break-Even Point
Break-Even Formula
Break-Even (months) = Closing Costs ÷ Monthly Savings
Real Example:
- • Current rate: 7.25% on $300,000 remaining balance
- • Current payment: $2,048/month (P&I)
- • New rate: 6.10% → New payment: $1,823/month (P&I)
- • Monthly savings: $225/month
- • Closing costs: $8,100 (2.7% of loan)
- • Break-even: $8,100 ÷ $225 = 36 months (3 years)
- • If you stay 5+ years → refinancing saves you $5,400+ net
Rule of thumb: If your break-even is under 3 years and you plan to stay, refinancing is almost always worth it. If break-even is 5+ years, think carefully about your plans.
Types of Mortgage Refinances in 2026
Rate-and-Term Refinance
Change your interest rate, loan term, or both. Most common type.
Best for: Lowering monthly payment or paying off faster
Pros
Lower rate, shorter term, no cash out required
Cons
Closing costs, resets amortization
Cash-Out Refinance
Borrow more than you owe and take the difference as cash.
Best for: Home improvements, debt consolidation, large expenses
Pros
Access home equity, potentially lower rate than HELOC
Cons
Higher loan balance, higher rate than rate-and-term, more closing costs
Streamline Refinance (FHA/VA)
Simplified refinance for existing FHA or VA loan holders.
Best for: FHA or VA borrowers wanting a lower rate quickly
Pros
No appraisal required, minimal documentation, faster closing
Cons
Must already have FHA or VA loan, limited cash out
No-Closing-Cost Refinance
Lender covers closing costs in exchange for a slightly higher rate.
Best for: Borrowers who may move in 2-3 years or lack cash for closing
Pros
No upfront costs, immediate savings
Cons
Higher rate (typically +0.25-0.375%), costs built into loan over time
When NOT to Refinance
You're moving soon
If you'll sell before the break-even point, you'll lose money on closing costs.
You're deep into your loan
Refinancing a 25-year-old loan to a new 30-year resets amortization — you'll pay far more total interest.
Rate drop is tiny (<0.5%)
On a $200K loan, 0.5% saves only $59/mo. Break-even on $6K closing costs = 8.5 years.
Your credit score dropped
If your score fell since your original loan, you may not qualify for a better rate than you already have.
You have a prepayment penalty
Some older loans have prepayment penalties. Check your loan documents before refinancing.
You're close to paying off
If you have 5 years left, refinancing to a new 30-year dramatically increases total interest paid.
Refinance Checklist: 6 Steps
Check your current rate and remaining balance
Find your most recent mortgage statement. Note your current rate, remaining balance, and monthly payment.
Calculate your break-even point
Use the formula above. If break-even is under your planned time in the home, refinancing likely makes sense.
Check your credit score
Pull your free credit report. A 740+ score gets the best rates. Below 620 may not qualify for rate improvements.
Get quotes from at least 3 lenders
Rates vary significantly between lenders. Getting 3+ quotes can save $1,000-$3,000 in closing costs and lower your rate.
Compare APR, not just rate
APR includes fees and gives a true cost comparison. A lower rate with high fees may cost more than a slightly higher rate with low fees.
Lock your rate and close
Once you choose a lender, lock your rate immediately (rates change daily). Refinances typically close in 30-45 days.
Ready to Refinance? Compare Rates Now
Compare refinance rates from 50+ lenders. No credit impact. See your personalized rate in 2 minutes.