Mortgage Refinance Analyzer
Compare your current loan against a proposed refinance to find the break-even point on closing costs and the true lifetime savings — including the trade-off of extending a partially-amortized loan back to a full term.
Current Loan
Auto-calculated: $3,132.71/mo. Override with the actual P&I from your statement if you've made extra payments or your loan was recast — the savings math depends on this.
New Loan
Typical closing costs run 2–5% of the new loan amount.
New Payment
$2,698
vs $3,133 current
Monthly Savings
+$435
Break-Even
19 mo
≈ 1.6 years
Cumulative Cost Comparison
+$73,317
Net savings over the life of the loan
Includes total interest difference and closing costs. Extending the loan term can reduce monthly payments while increasing total lifetime interest — watch the cumulative cost chart to find the cross-over point.
Modeling Assumptions
- Assumes both loans amortize on schedule with no extra payments.
- Closing costs apply once at the refinance date; rolled-in costs accrue interest at the new rate.
- Lifetime savings ignore the time value of money — for finance-literate users, discount these to present value mentally.
- Property tax, insurance, and PMI are excluded from this comparison since they apply equally to both loans.
About the Refinance Analyzer
Refinancing replaces your existing mortgage with a new one, typically at a different rate or term. It costs money upfront — closing costs commonly run 2 to 5 percent of the new loan — so the strategic question is whether those costs are recovered through lower monthly payments before you sell or move. BASIS shows you both the break-even point (when you stop losing money on the deal) and the lifetime savings (whether the total transaction is positive).
Key concepts this calculator models
- Break-Even Point
- The number of months required for accumulated monthly savings to equal the upfront closing costs. If you keep the loan past this point, you save money; if you sell or refinance again before it, you lose money on the transaction.
- Roll-In Closing Costs
- Adding closing costs to the new loan balance rather than paying cash. Eliminates upfront cost but increases the principal you pay interest on for the life of the loan.
- Term Extension Trade-off
- Refinancing a 28-year remaining loan into a new 30-year loan lowers the monthly payment but adds two years of payments. The cumulative cost chart shows the exact crossover.
- Lifetime Savings
- Total interest avoided over both loans, minus closing costs. A positive figure means the refinance pays off if you keep the loan to its full term.
When refinancing makes sense
Refinancing usually pays off when the rate drop is at least 0.75–1.0 percentage points, your remaining tenure in the home exceeds the break-even point by a comfortable margin, and the lifetime savings figure is meaningfully positive. Be especially careful when extending a partially-amortized loan back to 30 years — the monthly payment drops, but lifetime interest often rises.
Refinance questions
Plain-language answers about break-even math and closing cost roll-ins. These answers also feed the structured data that helps AI search and large language models cite this tool accurately.
When does refinancing actually pay off?
Refinancing pays off when your expected tenure in the home exceeds the break-even point on closing costs. If closing costs are $8,000 and the new loan saves $200 per month, break-even is 40 months — refinancing only saves money if you keep the loan longer than that.
Watch the lifetime cost figure too: extending a 28-year loan back to 30 years can lower the monthly payment but raise total interest. The break-even tells you when the cash starts flowing in your favor; the lifetime figure tells you whether the total deal is positive.
Should I roll closing costs into the new loan when refinancing?
Rolling closing costs into the loan eliminates the upfront cash outlay but increases the principal you pay interest on for the life of the loan. The trade-off depends on three factors: how long you will keep the loan, your alternative use for the cash, and your interest rate.
For short tenures, paying closing costs upfront is usually cheaper. For long tenures, the difference is small. If you would otherwise put the cash in a higher-earning investment, rolling can make sense even when the lifetime cost is slightly higher.