Evaluate if refinancing is financially sound. This calculator compares your current interest rate and term against new offers, factoring in closing costs to determine your break-even point and total potential savings.
The Mortgage Refinance Savings Calculator by kovertiz.com helps you evaluate loan restructuring benefits. Analyze your interest rate savings, calculate closing cost recovery, and find your refinance break-even point instantly.
Free tool for homeowners and real estate investors looking to lower mortgage payments. kovertiz.com provides private, client-side calculations with no personal data storage.
Visualizing the financial impact of rate reduction vs. term restructuring.
$300k @ 7% to 5% = Save $398/mo (Net Interest: -$143,280)
Total Interest Savings: $215,400 (Faster Equity Build-up)
$5k Costs / $200 Monthly Savings = 25 Months Break-even
Master the technicalities of mortgage refinancing. A specialized reference for break-even analysis, origination fees, and interest rate optimization.
| Refinance Metric | Financial Impact | Technical Definition & Context |
|---|---|---|
| Break-Even Point | High (Critical) | The specific month where accumulated monthly savings equal the upfront closing costs of the new loan. |
| Origination Fees | Upfront Cost | Charges by lenders to process a new refinance application, typically ranging from 0.5% to 1.5% of the total loan amount. |
| Cash-Out Refinance | Equity Access | Replacing an existing mortgage with a larger loan, allowing the borrower to receive the equity difference in liquid cash. |
| Rate-and-Term Refi | Monthly Savings | A refinance focused solely on reducing the interest rate or changing the loan duration without taking cash out. |
| LTV (Loan-to-Value) | Risk Metric | The ratio of your remaining balance to the current appraised home value; lower LTVs unlock better refinance rates. |
| Discount Points | Rate Reduction | Fees paid to the lender at closing in exchange for a permanently lower interest rate (buying down the rate). |
| Recasting | Payment Change | An alternative to refinancing where you pay a lump sum toward the principal and the lender recalculates the monthly payment. |
| Closing Cost Credit | Upfront Savings | A lender credit that covers closing costs in exchange for a slightly higher interest rate, reducing initial out-of-pocket expenses. |
Expert answers to help you master your mortgage refinance strategy. Calculate net savings and evaluate closing costs with kovertiz.com.
To find the break-even point, divide your total closing costs by your monthly savings. For example, if refinancing costs $3,000 and you save $150 per month, your break-even is 20 months. kovertiz.com automates this calculation to show when your new loan becomes profitable.
Yes. A real refinance ROI analysis must subtract lender fees, appraisal costs, and title insurance from your total interest savings. Our calculator ensures you factor in these upfront expenses to determine the actual net savings of your home loan restructuring.
A 1% reduction is a strong benchmark, but the loan-to-value (LTV) and how long you stay in the home are more important. Use our tool to see if a 1% interest rate drop covers the closing costs within your desired timeline before you sell or pay off the mortgage.
Refinancing to a 15-year mortgage can save you tens of thousands in cumulative interest compared to a 30-year term. Even with a slightly higher monthly payment, the debt service reduction is significantly higher, accelerating your home equity growth.
No. "No-cost" loans usually have a higher mortgage rate or roll the fees into the principal balance. kovertiz helps you compare if paying upfront closing costs yields better long-term financial savings than financing them.
Refinancing typically starts a new 15 or 30-year amortization schedule. If you’ve already paid 10 years of a loan, a new 30-year refinance "resets the clock." Our analysis helps you decide if a term reduction is better to avoid paying more total interest over time.