Refinance Calculator

Key factors: 1) Rate reduction: at least 0.5-1% lower rate typically needed. 2) Break-even period: under 3-5 years ideally — if you sell or move before break-even, you lose money on closing costs. 3) Time remaining: refinancing deep into a loan may not make sense (most interest already paid in early years).

Usually 2-5% of the loan amount: $4,000-$14,000 on a $280k loan. Includes: origination fee (0.5-1%), appraisal ($300-500), title insurance ($700-2,000), attorney fees, recording fees, and prepaid items (insurance, taxes). Some lenders offer no-closing-cost refis with slightly higher rates.

The lender pays closing costs in exchange for a higher interest rate (usually 0.125-0.25% higher). This makes sense if: you plan to sell/refinance again within a few years, you lack cash for closing costs, or the rate is still significantly lower than your current rate. Calculate both options.

Resetting extends your payoff date. Example: 20 years left on original, refinancing into another 30-year means 30 more years instead of 20. Consider a 15 or 20-year term to maintain payoff timeline while getting a lower rate. Or keep making the same payment on the new loan to pay it off faster.

Technically, you can refinance as soon as the math makes sense. Most lenders require 6 months of seasoning (payments) before refinancing. Repeat refinancing can cost you long-term if closing costs eat the savings. Focus on lifetime savings, not just monthly payment reduction.