Calculator
Refinance break-even
One number answers the whole question. If the break-even is longer than you expect to keep the loan, the refinance is a loss wearing the costume of a lower payment.
Costs divided by saving, in months
That single number answers the whole question. If it is longer than you expect to keep the loan, the refinance is a loss dressed as a lower payment.
- Current loan
- New loan
- Monthly difference
- +$283
- Interest left on the current loan
- $401,596
- Interest on the new loan, plus costs
- $384,167
- Lifetime difference
- +$17,429
Recovered in 15 months. If you expect to keep this loan longer than that, the arithmetic works.
Show the numbers as a table
| Year | Paid on current loan | Paid on new loan + costs | Net savings |
|---|---|---|---|
| 1 (2026) | $26,726 | $27,532 | -$806 |
| 2 (2027) | $53,452 | $50,864 | +$2,587 |
| 3 (2028) | $80,177 | $74,197 | +$5,981 |
| 4 (2029) | $106,903 | $97,529 | +$9,374 |
| 5 (2030) | $133,629 | $120,861 | +$12,768 |
| 6 (2031) | $160,355 | $144,193 | +$16,161 |
| 7 (2032) | $187,081 | $167,526 | +$19,555 |
| 8 (2033) | $213,806 | $190,858 | +$22,948 |
| 9 (2034) | $240,532 | $214,190 | +$26,342 |
| 10 (2035) | $267,258 | $237,522 | +$29,735 |
| 11 (2036) | $293,984 | $260,855 | +$33,129 |
| 12 (2037) | $320,709 | $284,187 | +$36,523 |
| 13 (2038) | $347,435 | $307,519 | +$39,916 |
| 14 (2039) | $374,161 | $330,851 | +$43,310 |
| 15 (2040) | $400,887 | $354,184 | +$46,703 |
| 16 (2041) | $427,613 | $377,516 | +$50,097 |
| 17 (2042) | $454,338 | $400,848 | +$53,490 |
| 18 (2043) | $481,064 | $424,180 | +$56,884 |
| 19 (2044) | $507,790 | $447,513 | +$60,277 |
| 20 (2045) | $534,516 | $470,845 | +$63,671 |
| 21 (2046) | $561,242 | $494,177 | +$67,064 |
| 22 (2047) | $587,967 | $517,509 | +$70,458 |
| 23 (2048) | $614,693 | $540,842 | +$73,852 |
| 24 (2049) | $641,419 | $564,174 | +$77,245 |
| 25 (2050) | $668,145 | $587,506 | +$80,639 |
| 26 (2051) | $694,871 | $610,838 | +$84,032 |
| 27 (2052) | $721,596 | $634,171 | +$87,426 |
| 28 (2053) | $721,596 | $657,503 | +$64,093 |
| 29 (2054) | $721,596 | $680,835 | +$40,761 |
| 30 (2055) | $721,596 | $704,167 | +$17,429 |
Estimates only. Principal and interest only; taxes and insurance do not change when you refinance. Sample figures for a demonstration site, not a quote or an offer to lend.
What people ask before they refinance
If Keystone originated your current loan, there is no origination fee on a rate and term refinance. That changes the break-even by roughly eight months on a typical file.
Rate and term refinanceNo, and anyone who quotes you one is guessing. The honest test is costs divided by genuine monthly saving. On a $320,000 loan with $4,200 of costs and a $148 saving that is 29 months. Whether that works depends entirely on how long you keep the loan.
Usually yes in total interest, even at a lower rate, because you are amortizing a seasoned balance over a fresh thirty years. The tool above shows both the monthly difference and the lifetime difference, which frequently point in opposite directions.
You do skip one, but it is not free. The interest for that period is rolled into the new balance. It helps cash flow in the month of closing and costs you a little in the long run. We show it rather than sell it.
Yes, and on an FHA loan it is the only way. Once a current appraisal puts you at 80% loan-to-value, a conventional refinance ends mortgage insurance permanently. On a $360,000 FHA loan that is roughly $165 a month against about $4,200 of costs.
Get the real break-even for your loan
Send us your current note rate, balance and remaining term. We will send back the arithmetic, including the case for doing nothing.
No application fee. Soft credit pull at pre-qualification. Flat $1,095 origination at closing.