Compare your current mortgage against a refinance — monthly savings, break-even point & lifetime interest, in seconds.
The golden rule: only refinance if you'll stay in the home past your break-even point. Enter how long you plan to stay:
| Item | Figure | Source |
|---|---|---|
| 30-year fixed mortgage | 7.28% avg | Freddie Mac PMMS, Oct 1 2026 |
| 15-year fixed mortgage | 6.60% avg | Freddie Mac PMMS, Oct 1 2026 |
| Refinance closing costs | 2–5% of loan | Bankrate 2026 |
| Rule of thumb | Cut rate by 0.75–1 point | Industry guidance |
Rates move weekly. Figures verified October 4, 2026 from Freddie Mac and WSJ/Bankrate. Closing-cost range per Bankrate and Monarch. Re-check before applying — your quoted rate depends on credit, equity and lender.
A lower interest rate shrinks your monthly payment and the total interest you pay over the loan's life. Even half a percentage point can save tens of thousands on a large balance. Shortening the term (e.g., 30 years to 15) cuts total interest even more, though the monthly payment may rise.
The fees to set up the new loan: origination, appraisal, title search and insurance, recording fees and prepaid interest. They typically run 2–6% of the loan amount — $6,000 to $18,000 on a $300,000 refinance. You can pay cash or roll them into the loan (which raises the balance).
Closing costs divided by your monthly savings. If closing costs are $7,500 and you save $250/month, you break even in 30 months. You only truly profit if you stay in the home longer than that. This calculator computes it automatically.
If you're moving before the break-even point, if your balance is small (savings won't cover costs), if the rate improvement is tiny, or if resetting to a new 30-year term means paying more total interest despite a lower payment. Always compare lifetime cost, not just the monthly payment.
No — this is the trap. Refinancing into a new 30-year loan restarts the amortization clock, so most early payments go to interest again. A lower monthly payment with a longer term can cost you more overall. Check the "Lifetime savings" line above; if it's negative, the refinance loses money.