Refinance
Calculator USA 2026

Consider refinancing when the rate difference is at least 0.50% to 0.75%, you plan to stay in the home long enough to recoup closing costs, and your credit score qualifies you for a better rate. A common rule of thumb is that refinancing makes sense when you can lower your rate by at least 0.5% and your break-even period is under 3 years.

Refinancing closing costs in the United States typically range from 2% to 5% of the loan amount. On a $300,000 refinance, expect $6,000 to $15,000. Common costs include origination fee (0.5-1%), appraisal ($400-$700), title search and insurance ($500-$3,000), credit report ($30-$50), recording fees ($50-$250), and various third-party fees.

A no-closing-cost refinance means the lender covers your closing costs in exchange for a slightly higher interest rate, typically 0.25% to 0.50% higher. You avoid upfront costs but pay more over the life of the loan. This can make sense if you plan to sell or refinance again within a few years, as you avoid paying closing costs you would not fully recoup.

Divide your total closing costs by the monthly savings from the new lower rate. For example, if refinancing costs $6,000 and your new payment is $200 less per month, your break-even point is 30 months (2.5 years). After that point, every month of savings is pure benefit. Only refinance if you plan to keep the loan past the break-even point.

Yes, but your options are more limited. FHA Streamline refinances require no credit check if you have an existing FHA loan. Conventional refinances typically require a minimum credit score of 620, though the best rates require 740 or higher. VA Interest Rate Reduction Refinance Loans (IRRRLs) also have relaxed credit requirements for eligible veterans.

A cash-out refinance replaces your existing mortgage with a larger loan, giving you the difference in cash. For example, if you owe $200,000 on a home worth $400,000, you could refinance for $300,000 and receive $100,000 in cash. Rates are typically 0.125% to 0.5% higher than a standard rate-and-term refinance, and most lenders cap cash-out at 80% LTV.

Refinancing can cause a temporary dip of 5-10 points due to the hard credit inquiry and new account. However, if you rate-shop within a 14-45 day window (depending on the scoring model), multiple mortgage inquiries count as a single inquiry. Your score typically recovers within a few months of consistent payments on the new loan.

Savings depend on the rate difference, loan balance, and remaining term. Reducing your rate by 0.50% on a $350,000 loan with 25 years remaining saves roughly $105 per month or $31,500 over the loan life. A 1.00% reduction saves around $210 per month or $63,000 total. Always subtract closing costs to calculate your net savings.

Refinancing from a 30-year to a 15-year mortgage can save a massive amount in interest, but your monthly payment will increase significantly. On a $300,000 balance, switching from a 30-year at 7.0% ($1,996/mo) to a 15-year at 6.0% ($2,532/mo) increases your payment by $536 but saves you over $200,000 in total interest.

A rate-and-term refinance changes your interest rate, loan term, or both without taking additional cash. A cash-out refinance lets you borrow more than you owe and pocket the difference. Rate-and-term refinances typically get better rates and lower closing costs because they are considered lower risk by lenders.