Am I better off refinancing?

This tool calculates whether the decision to refinance your mortgage loan is a good one based on the terms you enter for your current loan and for the refinance loan that you are considering. Since it compares costs for the same loan amount, the calculator should not be used to evaluate a cash-out refinancing.

Refinancing generally makes sense if you can lower your monthly payment by enough to cover the associated settlement charges (or closing costs) before selling your home or paying off the loan. Often, the break-even point for a refinance is two to three years. If you plan to sell your home within a year or so, refinancing may not make sense.