Mortgage Refinance Calculator

This tool re-amortizes your balance at a new rate and term, then compares the new payment to your current one. The new payment uses M = P[r(1+r)^n] / [(1+r)^n-1]. Monthly savings is the old payment minus the new. Break-even is total closing costs divided by that monthly savings, which tells you how many months of lower payments it takes to recover what the refinance costs.

Say you owe $350,000 at 7.50% on a 30-year loan, a payment near $2,447. Refinancing to 6.25% over 30 years drops the payment to about $2,155, saving roughly $292 a month. With about $7,000 in closing costs, break-even is $7,000 divided by $292, or about 24 months. Stay past two years and the refinance pays for itself.

Break-even matters most for South Florida owners who move often or hold seasonal properties. Resetting to a fresh 30-year term also lowers the payment but stretches interest over more years, so compare lifetime cost, not just the monthly drop. If your goal is to reach a set payoff date, pair this with the payoff tool. Title, recording, and Florida stamp taxes belong in your closing-cost total.