Should I Refinance My Mortgage?
Will a lower rate save enough to cover the closing costs before I move or pay off the loan?
A refinance only pays off if the monthly savings outlast the closing costs. Enter your current loan and the new offer to see the break-even month and the net result for how long you expect to keep the loan.
Balance, rate and years left.
Rate, term and closing costs.
Months until the costs are recovered.
Prepared by the Wealthton Editorial Team under our editorial policy. Last reviewed: October 5, 2026.
What this decision compares
Scenario A keeps your existing loan at its current rate for the years remaining. Scenario B replaces it with a new fixed-rate loan for the same balance and pays closing costs upfront. The net result at each horizon is the monthly payment saving multiplied by the months kept, minus closing costs — the same method as the Wealthton Mortgage Refinance Calculator.
How to read the result
Look at two numbers together. The break-even month shows how quickly closing costs are recovered. The lifetime-interest trade-off shows whether a longer new term quietly increases the total interest you pay even though the monthly payment falls. A refinance can be good for cash flow and still cost more over the life of the loan; which matters more depends on your plans.
What the model does not include
It does not include discount points, lender credits, escrow changes, rolling closing costs into the balance, cash-out amounts, tax effects, or investing the monthly savings. Quoted rates often change before closing, so re-run the numbers with the final Loan Estimate.
Change one thing
Under the results, each card changes a single input and keeps everything else fixed, then shows how far the main result moves. Use Apply this change to adopt it, or Pin as baseline first so the page lists what you changed and the effect. Copy shareable link saves only the inputs in the link (after the #), which is never sent to our server.
Your inputs vs calculated results
Every number in the left-hand form is an assumption you control. The verdict, scenario cards and the results-over-time table are calculated from those inputs only. Fixed model assumptions are listed under the results so you can see exactly what is not coming from you. Inputs outside a sensible range are limited and flagged rather than silently changed.
Check the numbers elsewhere
For more detail on the same scenario, use the Mortgage Refinance Calculator. For background on the trade-offs, read the How key rates affect mortgages, savings and loans. Our calculator methodology explains how Wealthton models are built and checked.
Related decisions
Rent or Buy a Home? — Will buying this home leave me wealthier than renting and investing the difference?
Pay Off Debt or Invest? — I have extra money each month. Should it go to my debt or into investments?
This is an educational scenario model, not personalized financial advice. Results depend entirely on the assumptions entered. See our disclosures, or contact us if you spot an error.