Refinance Calculator — Calculations & Slabs for FY 2026-27

Refinancing is typically beneficial if it lowers your interest rate by 0.75% or more, reduces your monthly payment, or shortens your loan term, provided you intend to remain in the home past your financial break-even point.

Refinancing carries closing fees similar to your original purchase, typically averaging between 2% and 5% of the loan amount. These fees cover lender origination, home appraisals, credit reports, and title searches.

The break-even point is the length of time (in months) required for your monthly payment savings to offset the closing costs of the refinance. For example, if closing costs are $3,000 and you save $150 per month, your break-even point is 20 months.

Rolling closing costs into your mortgage balance allows you to refinance without paying cash upfront. However, it increases your total loan principal, meaning you will pay interest on those fees over the life of the loan, which slightly reduces overall savings.

Yes. This is a common strategy to build equity faster and save thousands in interest. While your monthly payment may increase depending on interest rate drops, you will pay off your house much quicker.