Mortgage Refinance Break-Even Point Calculator

Want to determine whether refinancing your mortgage makes sense for your situation? This helpful calculator takes your loan information to determine the break-even point if you refinance.

The tool determines your break-even point by dividing the cost of refinancing by the savings each month of a lower mortgage payment. Based on the method you use to refinance your mortgage, the actual costs to refinance may vary. The benefit of a refinance is also impacted by the amount that you still owe on your mortgage and your current mortgage rate.

At Global Credit Union Bank, we want to help you make the best financial decisions for your situation. We created this calculator to provide you with the information you need to determine whether refinancing is the right decision for you.

Reasons to Refinance Your Mortgage

Refinancing your mortgage allows you to replace your current mortgage with a loan that has new terms, like a shorter repayment period. Here are some reasons why refinancing may benefit you:

• Save money on loan interest: Refinancing may allow you to lower your interest rate if the current rate is below what you pay now.
• Change loan terms: You can adjust the terms to pay the mortgage off sooner or extend the repayment period.
• Use equity: Refinancing may allow you to free up cash that you can borrow.

How to Use Our Mortgage Refinance Break-Even Calculator

To use our refinance calculator, you'll need to know information such as:

• Current monthly payment: The amount you pay for your loan before refinancing.
• New loan amount: The loan amount you will need to cover the remainder of your mortgage payment.
• New interest rate: The changed interest rate you would get by refinancing.
• Loan term: The number of years set for loan repayment.
• Closing costs: The money it will cost to replace your existing mortgage with a new one.

Use our calculator to calculate the number of months it will take you to break even if you refinance. Typically, you want the time to be relatively short, unless you plan to own the home for a long period.

The calculator also tells you a new estimated monthly payment and monthly savings. If you do refinance, your monthly savings can automatically be transferred to a savings account to help build your emergency fund.

When using our calculators, remember that the dollar amounts are not a guarantee. The estimates are only meant to provide a rough value to help you make educated decisions.