Determine if refinancing your loan makes financial sense.
Monthly savings = old payment − new payment; breakeven months = closing costs / monthly savings.
Cutting a payment from $1,663 to $1,498 saves $165/month; $4,000 closing costs break even in about 24 months.
When the monthly savings recover the closing costs within the time you plan to keep the loan, or when you shorten the term and can afford the payment.
Refinancing usually costs 2–5% of the loan amount in fees, which must be recovered through lower payments.
A shorter term raises the payment but can save a large amount of interest. Run both scenarios to compare total cost.
Browse all Financial Calculators