Free Mortgage Refinance Calculator — Save on Your Loan
Published: 8 November 2026 · Updated: 8 November 2026
Enter your current loan and the new rate you have been offered to see your new monthly payment, your monthly savings, the month you break even on closing costs, and whether refinancing actually saves you money over the time you plan to stay.
Refinancing a $300,000 loan from 7.5% to 6.5% saves about $266 a month and breaks even on $9,000 of closing costs in about 34 months. Over 10 years in the home you keep about $22,920 after costs. The trap: a new 30-year term resets your payoff clock, so match the term to your remaining years or the lower payment can still cost more total interest.
Researched by MixKhazana Team · Last updated 8 November 2026 · Data: Bankrate national average refinance rates, 8 November 2026 (30-year 7.30%, 15-year 6.71%); standard amortization formula
How to use
- Enter your current loan balance, your current rate and the years left on the loan.
- Enter the new rate and new term your lender offered, plus the closing costs.
- Set the years you plan to stay in the home — refinancing only pays if you stay past break-even.
- Click Calculate Refinance Savings and read the verdict: monthly saving, break-even month and lifetime interest.
How it works
Refinancing replaces your current mortgage with a new loan. The monthly payment on any fixed-rate loan comes from the amortization formula: M = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan balance, r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly payments. A lower rate shrinks M — but a longer term stretches n, which is why a new 30-year loan can cost more total interest than the loan it replaces, even at a lower rate.
The number that decides everything is the break-even point: closing costs ÷ monthly savings. Bankrate's research puts typical closing costs at 2% to 5% of the loan amount — $6,000 to $15,000 on a $300,000 loan — and its rule of thumb is that refinancing is worth pursuing when you can cut your rate by 0.5 to 1 percentage point and your break-even point is under 3 years. There is a second trap the calculator exposes: refinancing into a new 30-year term resets your payoff clock. If you had 27 years left and take a new 30-year loan, you pay for three extra years — so always compare total interest, not just the monthly payment.
Today's rates give the context: as of 8 November 2026, Bankrate's national average 30-year fixed refinance rate is 7.30% and the 15-year average is 6.71%. Bankrate's Hidden Homeownership Tax research found that 87% of borrowers in 2025 paid above the most competitive rate available, at an average cost of $3,343 a year — so the rate you are offered matters more than the calculator's rounding. Get quotes from at least three lenders. Expats weighing a move should also read the housing picture abroad: our sister site explains mortgages for expats in Germany, where the same break-even logic applies in euros.
Worked example
A homeowner with a $300,000 balance, 27 years left at 7.5%, is offered 6.5% over 30 years with $9,000 closing costs:
- Current payment: $2,162.20 a month; interest remaining over 27 years: $400,553
- New payment: $1,896.20 a month — a saving of $266.00 a month
- Break-even: $9,000 ÷ $266.00 ≈ 34 months (2 years 10 months)
- 10 years in the home: $266.00 × 120 months − $9,000 = $22,920 better off
- Total interest on the new 30-year loan: $382,633 — only $17,920 less than the current loan, because the term resets to 30 years
- 15-year alternative at 6.71%: $2,648.08 a month, but total interest of only $176,654 — $205,979 less than the new 30-year loan
The lesson: the 30-year refinance wins on monthly cash flow, the 15-year wins on total cost. Try your own numbers above — especially the term, which moves total interest more than the rate does.
30-year vs 15-year refinance at a glance
| Monthly payment (30-yr at 6.5%) | $1,896.20 |
| Monthly payment (15-yr at 6.71%) | $2,648.08 |
| Total interest (30-yr) | $382,633 |
| Total interest (15-yr) | $176,654 |
| Break-even (30-yr, $9,000 costs) | ≈ 34 months |
| National average, 8 Nov 2026 (Bankrate) | 30-yr 7.30% · 15-yr 6.71% |
Frequently asked questions
What does refinancing a mortgage mean?
Refinancing means replacing your current mortgage with a new loan — usually at a lower interest rate, a different term, or both. You pay off the old loan with the new one, and then pay the new lender instead. The goal is normally a lower monthly payment, less total interest, or both.
When does refinancing make sense?
Refinancing makes sense when you can lower your rate by roughly 0.5 to 1 percentage point and you will stay in the home past the break-even point — the month your monthly savings cover the closing costs. Bankrate's rule of thumb: if the break-even point is under 3 years and you plan to stay that long, refinancing is worth pursuing now.
What is the break-even point on a refinance?
The break-even point is how long it takes your lower monthly payment to cover the refinance costs: divide your total closing costs by your monthly savings. On a $300,000 loan refinanced from 7.5% to 6.5%, closing costs of $9,000 against $266 of monthly savings break even in about 34 months — just under 3 years.
How much does it cost to refinance a mortgage?
Refinancing typically costs 2% to 5% of the new loan amount — $6,000 to $15,000 on a $300,000 loan, according to Bankrate. The biggest costs are the origination fee (0.5% to 1.5% of the loan) and the appraisal ($300 to $1,000). Some lenders offer no-closing-cost refinances, but they usually charge a higher rate instead.
Does refinancing reset my payoff clock?
Yes — refinancing into a new 30-year term restarts the 30-year clock, even if you had only 27 years left. That is why the break-even math matters more than the monthly payment: a lower payment over a longer term can still cost more total interest. Match the new term to your remaining term, or choose a shorter term, to avoid paying more overall.
Should I refinance into a 15-year or a 30-year loan?
A 15-year refinance costs more every month but far less in total interest. On a $300,000 loan at the 15-year national average of 6.71% (8 November 2026), the payment is $2,648 a month versus $1,896 on a new 30-year loan at 6.5% — but total interest is $176,654 versus $382,633. Choose the 15-year term only if the higher payment fits your budget comfortably.
How often can I refinance my mortgage?
There is no legal limit on how many times you can refinance, but lenders impose waiting periods called seasoning periods — from no required wait to 12 months depending on the loan type. Government-backed streamline refinances also require a net tangible benefit, meaning the refinance must leave you financially better off.
What are today's refinance rates?
As of 8 November 2026, Bankrate's national average 30-year fixed refinance rate is 7.30% and the 15-year fixed refinance average is 6.71%. Rates change daily and vary by credit score, loan size and location — get quotes from at least three lenders, because Bankrate's research found 87% of borrowers in 2025 paid above the most competitive rate available, at an average cost of $3,343 a year.