Calculators

Is refinancing worth it?

Enter your current loan, then test a new rate and term. You will see the monthly change, the breakeven point, and the honest life-of-loan difference.

$350,000
7.25%
27 yr
6%
New term (years)

—

—

Current payment (P&I): —

New payment (P&I): —

Breakeven: —

Life of loan: — —

Get a real refi review

Estimate only, based on figures you entered — including a new rate you chose to test, which is not a rate offered, quoted, or advertised by EMK Mortgages. Principal-and-interest comparison only; it excludes taxes, insurance, mortgage insurance, and any escrow changes, and it is not an offer, approval, or commitment to lend. Whether a refinance makes sense depends on your full situation — that is what a review with Emily and Leif is for.

How this works

Monthly savings vs. the whole loan

A refinance has two scoreboards. The first is monthly: your new payment against your current one. The second is the whole loan: what you would pay in total from here — and this is where term matters. Rolling 27 remaining years into a fresh 30-year loan stretches the debt back out, so the payment can fall while the lifetime cost rises. This calculator shows both numbers, plus the breakeven — how many months of savings it takes to earn back your closing costs. If you will be in the home well past breakeven, the refinance conversation is worth having.

When does refinancing a mortgage make sense?
Usually when the monthly savings outlast the cost of getting there. If the new payment saves you money each month, divide your closing costs by that savings — that is your breakeven, in months. If you will keep the loan well past the breakeven point, a refinance can be worth a serious look; if you might sell or refinance again before then, it may not be.
What is the breakeven point on a refinance?
The number of months it takes for your monthly savings to add up to what the refinance cost you in closing costs. For example, $4,000 in costs at $200 of monthly savings breaks even in 20 months. Every month you keep the loan after that is money ahead.
What is the 2% rule for refinancing?
It is an old rule of thumb that says refinancing is only worth it if you can drop your rate by two full percentage points. Treat it as folklore rather than math. It was coined when closing costs were proportionally much higher, and it ignores the things that actually decide the question: what the refinance costs you, how long you will keep the loan, and whether you are changing the term. A half-point drop on a large balance with low costs can beat a two-point drop on a small balance with high ones. Run your own numbers above — the breakeven is the answer, not the rule.
How much does it cost to refinance a mortgage?
Refinancing carries most of the same closing costs as the original loan — lender fees, an appraisal if one is required, title and settlement charges, and prepaid taxes and insurance. It is normal for the total to land in the low thousands, and it varies with your loan size, your property, and the program. Some of it can be rolled into the new loan rather than paid up front, which lowers what you bring to closing but raises the balance you are financing. We can give you an itemised figure for your actual situation; the calculator above lets you test how any cost figure changes the breakeven.
Does refinancing restart my loan term?
It can. Refinancing 27 remaining years into a new 30-year loan lowers the payment partly by stretching the debt back out — which can raise the total you pay over the life of the loan even while the monthly payment falls. That is why this calculator shows the life-of-loan difference alongside the monthly change. A shorter new term, like 20 or 15 years, avoids the stretch.

Numbers pointing toward pulling equity out instead? Read how a cash-out refinance works in Utah — or step back to whether refinancing is right for you at all.

Keep exploring

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Want an honest read on your refi?

We will look at your actual loan and tell you plainly whether refinancing helps — including when the answer is no.

Talk to Emily & Leif