Your rates, your horizon
Stay or Refi Calculator
This calculator answers one question with your numbers: over the years you will actually keep the loan, does refinancing come out ahead after closing costs? It uses rates you enter. It does not pull a live rate, because the rate on an advertisement is not the rate a lender will offer you.
- Fixed-rate amortization, formulas on the methodology page
- Closing costs counted against the new loan
- Term restart shown, not hidden
Refinancing wins on these inputs if you stay past month 17. Over your 7-year horizon it comes out about $19,992 ahead after closing costs.
- Current payment (principal and interest)
- $2,883 per month
- New payment (principal and interest)
- $2,528 per month
- Monthly change
- $355 less
- Break-even month
- Month 17
- Interest if you stay 7 years, current loan
- $200,031
- Interest plus closing costs, new loan
- $180,040
- Net over your stay horizon
- $19,992 ahead by refinancing
- Lifetime interest difference (full term, after closing)
- $17,893 less with the refinance
Term restart warning: the new 30-year term runs longer than the 27 years left on your current loan. A lower monthly payment can still cost more over the full life of the loan. Compare the lifetime interest line above, not just the payment.
Assumptions printed in full: fixed rates for the whole term, no points beyond the closing cost figure you entered, no cash out, no prepayment, taxes and insurance excluded because they do not change with the lender. This is an estimate for education, not a loan offer.
How to read the result
- Break-even month is when payment savings have repaid the closing costs you entered. If you might move before it, the refinance has not paid off yet.
- Net over your stay horizon compares interest paid under each loan during the years you stay, with closing costs counted against the new loan. This is the fairest short-horizon test.
- Lifetime interest difference exposes the term restart. A new 30-year term can lower the payment and raise lifetime interest at the same time.
Worked example
On the default inputs, a $400,000 balance at 7.5% with 27 years left costs about $2,797 a month. Refinancing to 6.5% on a new 30-year term costs about $2,528 a month and breaks even around month 23 on $6,000 of closing costs. Over a seven-year stay the refinance comes out ahead, but the fresh 30-year term charges more lifetime interest if held to the end than finishing the old loan would. Both facts matter, which is why both are printed.
Assumptions, printed rather than buried
The tool assumes fixed rates for the full term of each loan, no cash out, no prepayment, and no rate buydown beyond what you include in the closing cost figure. Taxes, insurance, and escrow are excluded because refinancing does not change what you owe for them; the lender only changes who collects them. Your Loan Estimate is the authoritative cost figure. Get it in writing from each lender before trusting any calculator, including this one. The full formula and review process are on the methodology page.
Limits
- Fixed rates only, for the full term of each loan. Adjustable loans need the cap analysis in our ARM to fixed guide.
- Taxes, insurance, and escrow are excluded because refinancing does not change what you owe for them.
- Your Loan Estimate is the authoritative cost figure. Get it in writing from each lender before trusting any calculator, including this one.
Common questions
Why does this calculator ask me to enter rates instead of pulling a live rate?
Because a published average or an advertised rate is not a quote for your loan. Credit profile, equity, loan type, property, and points move individual offers above and below any average. The rate tracker shows the Freddie Mac survey for context; this tool works on the quote a lender actually gave you.
What should I enter as closing costs?
Enter lender charges, third-party fees, and any points from your Loan Estimate. Leave prepaid taxes, insurance, and escrow deposits out, because you owe those on the old loan too. The closing cost guides walk through each section of the estimate line by line.
Why does lifetime interest matter if my payment falls?
A new term restarts the clock. Stretching the years left on your loan back out to 30 years lowers the payment even at the same rate, while charging more interest over the full life of the loan. Compare the lifetime line and the net over your stay before deciding the lower payment was a win. The break-even guide explains the trade in full.
Can I use this for an adjustable rate mortgage?
Not directly. This tool holds each rate fixed for the full term. If your current loan adjusts, price the capped payment from your note first, then compare a fixed refinance against that scenario. Our ARM to fixed guide shows how to run that comparison.
Sources and verification
Arithmetic from the amortization formulas shown on the methodology page. Rate context: Freddie Mac Primary Mortgage Market Survey, week released October 1, 2026 (30-year fixed average 7.28%, checked October 4, 2026). Closing cost categories follow Consumer Financial Protection Bureau guidance on the Loan Estimate. This tool provides educational estimates, not a loan offer.