How do I know if refinancing is worth it?

A simple test is the break-even point: how many months of lower payments it takes to recover closing costs. If you expect to keep the loan well past that point, refinancing may make sense. Total interest and your goals matter too.

Why can a lower payment still cost more overall?

Restarting a 30-year term spreads payments over more years. The lifetime difference line shows that trade-off.

What are typical refinance costs?

They vary by lender, loan size and state. Ask for a Loan Estimate to compare real costs.

Can closing costs be rolled into the loan?

Often, yes, which raises the balance. This calculator assumes costs are paid in cash for clarity.

What about cash-out refinancing?

Cash-out increases the balance, so the payment comparison changes. A loan officer can model it.

How does rate watch relate to this?

On client sites, borrowers can opt in to rate watch. When rates hit the LO’s target, the LO is alerted to run exactly this comparison. See automations.

Are taxes and insurance included?

No, they usually stay the same after a refinance, so they are left out of the comparison.

No. It is an educational estimate from a website provider, not a lender.

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Refinance break-even calculator

Compare your current principal-and-interest payment with a new loan and see how many months it takes for the monthly savings to cover the refinance closing costs.

Estimates for illustration only. Mortgage Funnel Suite is a website and marketing provider, not a lender, broker or financial advisor; this is not an offer of credit or a rate quote. Talk to a licensed loan officer for real numbers.

How the math works

What this calculator does

1Current payment uses your remaining balance, current rate and years left.
2New payment uses the same balance at the new rate and term (closing costs paid in cash).
3Monthly change = current payment − new payment.
4Break-even months = closing costs ÷ monthly change.
5Lifetime difference compares total remaining payments plus costs.

Break-even (months) = closing costs ÷ (old payment − new payment)

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Calculator questions, answered

YouHow do I know if refinancing is worth it?

Funnel Suite team
A simple test is the break-even point: how many months of lower payments it takes to recover closing costs. If you expect to keep the loan well past that point, refinancing may make sense. Total interest and your goals matter too.
YouWhy can a lower payment still cost more overall?

Funnel Suite team
Restarting a 30-year term spreads payments over more years. The lifetime difference line shows that trade-off.
YouWhat are typical refinance costs?

Funnel Suite team
They vary by lender, loan size and state. Ask for a Loan Estimate to compare real costs.
YouCan closing costs be rolled into the loan?

Funnel Suite team
Often, yes, which raises the balance. This calculator assumes costs are paid in cash for clarity.
YouWhat about cash-out refinancing?

Funnel Suite team
Cash-out increases the balance, so the payment comparison changes. A loan officer can model it.
YouHow does rate watch relate to this?

Funnel Suite team
On client sites, borrowers can opt in to rate watch. When rates hit the LO’s target, the LO is alerted to run exactly this comparison. See automations.
YouAre taxes and insurance included?

Funnel Suite team
No, they usually stay the same after a refinance, so they are left out of the comparison.
YouIs this advice?

Funnel Suite team
No. It is an educational estimate from a website provider, not a lender.

Put calculators like this on every LO page

Every suite site includes the full calculator set, branded and wired to your CRM.

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