A better rate? See the whole story.
Compare fees, break-even, and payment.
Modeled savings at your horizon
Includes closing costs and the difference in remaining loan balances.
When you reach 7 years
- Cumulative cash-flow savings, after upfront fees
- $23,886
- Old loan balance remaining
- $302,927
- New loan balance remaining
- $304,774
- New starting balance
- $340,000
- Fees paid upfront
- $6,000
- Lifetime interest & fee savings
- $35,890
Balance-adjusted savings = cumulative cash-flow savings + old remaining balance − new remaining balance. Break-even is the first crossing, not a promise savings stay positive. No discounting, tax effects, escrow, PMI changes or cash-out modeled.
This refinance extends your repayment timeline. Check the balance-adjusted result and lifetime costs, not just the monthly savings.
Compare the refinance decision in layers
Follow the assumptions into the result so a single headline number never stands alone.
- 01Keep the old loan visibleEnter the remaining balance, rate, term, fees, and the time you expect to keep the loan.
- 02Model the new offerChange the new rate and term while keeping costs explicit.
- 03Check both break-evensRead cash-flow and balance-adjusted break-even together.
Rate history
Freddie Mac PMMS 30-year and 15-year national averages for the last 8 weeks.
| Week of | 30-yr | 15-yr |
|---|---|---|
| Oct 8, 2026 | 7.4% | 6.73% |
| Oct 1, 2026 | 7.28% | 6.6% |
| Sep 24, 2026 | 7.03% | 6.42% |
| Sep 17, 2026 | 6.95% | 6.26% |
| Sep 10, 2026 | 6.76% | 6.09% |
| Sep 3, 2026 | 6.71% | 6.04% |
| Aug 27, 2026 | 6.66% | 5.98% |
| Aug 20, 2026 | 6.65% | 5.95% |
How the calculation works
The new payment is solved the same way as a purchase payment, from the new rate and new term on your remaining balance plus any financed fees.
Cash-flow break-even finds the first month where cumulative payment savings cover the cash fees you paid upfront. Balance-adjusted break-even also nets out the difference between the old and new outstanding balances at each month.
Worked example
Worked example with the default refinance inputs. $340,000 remaining balance, 7.25% old rate, 324 payments remaining, refinanced into a new 6% rate over a new 30-year term, $6,000 in fees paid in cash, an 84-month horizon.
- Old payment ≈ $2,394.26/month; new payment ≈ $2,038.47/month, a monthly savings of about $355.79.
- Cumulative payment savings cover the $6,000 in fees by about month 17 (cash-flow break-even).
- Accounting for the new loan restarting its balance, the balance-adjusted break-even lands about month 18.
At the 84-month horizon, modeled lifetime savings are about $35,890.26.
Assumptions
- Only principal and interest are compared; taxes, insurance, PMI changes, cash-out and tax effects are excluded.
- Fees are either paid in cash or fully financed into the new balance, not partially either way.
When to use this
Use this page before refinancing to see whether you will hold the loan long enough to recover the closing costs, not just whether the new rate is lower.
Common mistakes
- Comparing only the new rate to the old rate without checking either break-even date.
- Assuming savings stay positive forever after the first break-even; they can turn negative again if the old loan would have ended sooner.
Big decisions. Clearer answers.
The refinance break-even number that is easy to miss.
Why comparing the remaining balance matters when refinancing into a longer loan, even when the payment falls.
Mortgage points: pay now, or pay over time?
Compare discount points and lender credits using actual quoted rates, fees and the time you expect to keep a mortgage.
15-year or 30-year mortgage: compare the right numbers.
Compare required payments, interest costs and the flexibility of extra payments on 15-year and 30-year fixed mortgages.
Lower payment does not always mean lower cost.
Start with your current balance and the number of payments left, not your original loan amount. Enter the new loan offer and all nonrefundable refinancing costs. Choose whether those costs are paid now or added to the new balance. The cash-flow result compares payments made. The balance-adjusted result also compares what you would still owe at your chosen horizon, making the cost of restarting a long loan easier to see.
A few things you
might be wondering.
No fine-print scavenger hunt required.
Read the full methodology
Why are there two break-even numbers?
Cash-flow break-even is the first month cumulative payment savings cover cash fees. Balance-adjusted break-even also accounts for the difference in outstanding balances. A longer new term can make the two dates very different.
How are financed closing costs treated?
They increase the new principal. You pay interest on those costs, and the remaining portion is still part of your debt at the comparison horizon.
Can savings turn negative after the first break-even?
Yes. First crossing does not mean permanent savings. For example, the old loan may end while the new loan keeps requiring payments. Always check your intended horizon and the lifetime result.
Does this include PMI removal or cash-out?
No. The comparison is principal and interest plus entered nonrefundable fees. PMI changes, escrow adjustments, cash-out, discounting and tax effects are excluded.
Source references: CFPB: Loan Estimate explainer CFPB: Interest rate versus APR
Sources checked 2026-09-11. Educational software; no professional review claimed.
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