Refinancing replaces your existing mortgage with a new one, often at a different rate or with different terms. This calculator helps you determine if the savings outweigh the costs.
The break-even period shows how long it takes for your monthly savings to cover the penalty and refinancing costs. If you plan to stay in your home longer than this period, refinancing may make sense.
Your penalty depends on your current lender and mortgage type. Most fixed-rate mortgages use the greater of 3 months' interest or the Interest Rate Differential (IRD). Variable-rate mortgages typically use 3 months' interest.