Enter your current loan details and see your new payment, true break-even point, and lifetime interest savings, plus whether a refi actually makes sense given how long you plan to stay.
Live payment calculationReal break-even analysisTotal interest comparisonCash-out option included
How to use this calculator: Enter your current loan balance, rate, and remaining term. Then enter your new rate and term to see the impact. Toggle cash-out if you want to include equity you plan to pull. All results update as you type.
The break-even point is everything
A lower rate does not automatically mean refinancing makes sense. What matters is how long it takes to recoup your closing costs through monthly savings and whether you plan to stay long enough to get there.
If you sell or pay off the loan before your break-even, the refi costs you money no matter how good the rate looks on paper. This calculator shows you that number upfront so you are not guessing.
Why total interest matters more than payment
Refinancing into a new 30-year term can meaningfully lower your monthly payment while costing significantly more over the life of the loan. If you have 20 years left on your current mortgage and restart at 30 years, you are adding a decade of interest payments.
This calculator shows you total interest remaining on your current loan versus your new loan, starting from today, not from day one, so you see the real lifetime picture before you decide.
Common questions about refinancing
How much does it cost to refinance?
Closing costs on a refinance typically run between 2% and 5% of the loan amount. This includes lender fees, title fees, appraisal, and prepaid items like insurance and property taxes. You can pay these out of pocket to keep your loan balance lower, or roll them into the new loan if you want to minimize upfront expense. Rolling them in increases your payment and total interest over time.
How much should rates drop before I refinance?
The old rule of thumb was to wait for a full 1% drop, but that is too simplistic. What matters is your break-even point relative to how long you plan to stay. A 0.5% drop with low closing costs and a long time horizon can absolutely make sense. Use this calculator with your actual numbers rather than relying on a rule of thumb.
Does refinancing restart my loan term?
It does if you choose a new 30-year term. That can lower your monthly payment significantly but means paying interest for longer. If you have 20 years left on your current mortgage and refinance into another 30, you are adding a decade of interest payments. A 15 or 20-year term can give you a lower rate while preserving or accelerating your payoff timeline. Use the term selector to compare.
What is cash-out refinancing and when does it make sense?
A cash-out refi replaces your current mortgage with a larger one and you receive the difference in cash. It can be a smart way to fund home improvements or consolidate high-interest debt at mortgage rates. It makes the most sense when home equity is strong, the rate you can get is meaningfully lower than alternatives, and the payment increase is manageable. Use the cash-out toggle to see the impact on your numbers.
What LTV do I need to refinance?
For a conventional rate-and-term refinance, most lenders want an LTV of 97% or below. To avoid private mortgage insurance on a conventional loan, you generally need to stay at or below 80% LTV. For cash-out refinances, conventional guidelines typically cap at 80% LTV. FHA and VA have their own rules. Contact us for guidance specific to your loan type and situation.
How long does a refinance take?
Most refinances close in 20 to 45 days depending on documentation, file complexity, and lender volume. At Dylken Home Loans, our average closing time is 16 days. Working with a broker who actively manages the process makes a meaningful difference in how quickly and smoothly a refinance moves.
Ready to see your real refi numbers?
A calculator is a starting point. Get a personalized rate quote from Dylken Home Loans and find out exactly what refinancing could save you in TX, FL, MN, and CO.