How do I know if refinancing my mortgage is worth it?

The key metric is the break-even point: divide your closing costs by your monthly savings. If you plan to stay in the home past that number of months, refinancing saves you money. A common rule of thumb is that a rate drop of at least 0.75 to 1 percentage point makes refinancing worthwhile.

What costs are involved in refinancing?

Typical closing costs for a refinance run 2 to 5 percent of the loan amount and include appraisal fees, title insurance, origination fees, and recording fees. On a $300,000 loan, expect roughly $6,000 to $15,000 in total closing costs.

Mortgage Refi Calculator: See What a Better Rate Saves

Ledger · Mortgage Refinance

FORM 04-C · REV. 2026

Lower rate · lower payment · less interest

What a better rate would buy you back.

Compare your current mortgage to a refinance at today's rate. We will show you when you break even on closing costs and how much you keep over the life of the loan.

← Settlement ← DMP

Your loans01

Current mortgage

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Remaining balanceUSD

Current rateAPR

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Refinance offer

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New rateAPR

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If you refinanced today02

Stay on current loan

total cost over remaining term

Refinance + closing

total cost incl. closing costs

You save

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INTEREST SAVED 0%

Break-even point

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Monthly P&I

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Total interest

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Rate drop

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basis points

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net of closing costs

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Refinanced P&I

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Cumulative cost over time

Current Refinanced

How this is calculated. Both loans use a standard fixed-rate amortization (principal and interest only). "Stay on current loan" sums every payment from now until your existing balance reaches zero at your remaining term. "Refinance" assumes you roll your current balance into a new loan at the chosen rate and term, paying closing costs out of pocket. Break-even is the month at which cumulative refinance costs (including closing) drop below cumulative current-loan costs. Taxes, insurance, escrow, and PMI are excluded.