Is Refinancing Worth It?

Refinancing makes sense when the interest saved outweighs the closing costs within the time you expect to keep the loan. Divide your closing costs by the monthly savings to find the break-even month — the point where the new loan starts paying for itself. Because extending the term lowers the payment but adds interest months, this calculator compares interest over the full new term against the interest remaining on your current loan, so a lower payment stretched over more years is exposed honestly.