{
  "slug": "refinance-vs-keep-mortgage-cost",
  "title": "Refinance vs Keep Mortgage Calculator",
  "heading": "Refinance vs Keep Current Mortgage Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/refinance-vs-keep-mortgage-cost",
  "summary": "See if a lower rate refinance pays back its closing costs before you sell or pay off the loan.",
  "description": "Refinancing to a lower rate reduces your monthly payment and total interest, but closing costs eat into those savings until you cross the breakeven month. This calculator compares your current mortgage's remaining interest against a new refinanced loan's interest plus closing costs, and tells you exactly how many months of savings it takes to recoup the cost of refinancing.",
  "formula": "Monthly Savings = Current Payment − New Payment. Breakeven Months = Closing Costs / Monthly Savings.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=refinance-vs-keep-mortgage-cost",
  "inputs": [
    {
      "id": "currentBalance",
      "label": "Current loan balance",
      "kind": "number",
      "hint": null,
      "default": 320000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "currentRate",
      "label": "Current rate",
      "kind": "number",
      "hint": null,
      "default": 7.25,
      "unit": "%",
      "min": 0,
      "max": 15
    },
    {
      "id": "currentRemainingYears",
      "label": "Years remaining on current loan",
      "kind": "number",
      "hint": null,
      "default": 27,
      "unit": null,
      "min": 1,
      "max": 30
    },
    {
      "id": "newRate",
      "label": "New refinance rate",
      "kind": "number",
      "hint": null,
      "default": 6,
      "unit": "%",
      "min": 0,
      "max": 15
    },
    {
      "id": "closingCosts",
      "label": "Refinance closing costs",
      "kind": "number",
      "hint": null,
      "default": 6000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "planToStayYears",
      "label": "Years you plan to stay/keep loan",
      "kind": "number",
      "hint": null,
      "default": 10,
      "unit": null,
      "min": 1,
      "max": 30
    }
  ],
  "outputs": [
    {
      "id": "winner",
      "label": "Lower total cost option",
      "format": "raw",
      "hint": null,
      "primary": true
    },
    {
      "id": "refiTotal",
      "label": "Refinance total cost over stay period",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "keepTotal",
      "label": "Keep current loan total cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "diff",
      "label": "Total cost difference",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "breakevenMonths",
      "label": "Breakeven point",
      "format": "duration",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Current loan balance: 320000 $",
      "Current rate: 7.25 %",
      "Years remaining on current loan: 27",
      "New refinance rate: 6 %",
      "Refinance closing costs: 6000 $",
      "Years you plan to stay/keep loan: 10"
    ],
    "outputs": [
      "Lower total cost option: Refinance",
      "Refinance total cost over stay period: $245,610",
      "Keep current loan total cost: $270,410",
      "Total cost difference: $24,800",
      "Breakeven point: 23.4"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter current loan balance ($).",
      "Enter current rate (%).",
      "Enter years remaining on current loan.",
      "Enter new refinance rate (%).",
      "Enter refinance closing costs ($).",
      "Enter years you plan to stay/keep loan.",
      "Read your lower total cost option on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "currentBalance": 190000,
        "currentRate": 4.35,
        "currentRemainingYears": 16,
        "newRate": 3.5999999999999996,
        "closingCosts": 3500,
        "planToStayYears": 6
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "currentBalance": 320000,
        "currentRate": 7.25,
        "currentRemainingYears": 27,
        "newRate": 6,
        "closingCosts": 6000,
        "planToStayYears": 10
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "currentBalance": 510000,
        "currentRate": 11.600000000000001,
        "currentRemainingYears": 30,
        "newRate": 9.600000000000001,
        "closingCosts": 9500,
        "planToStayYears": 16
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What breakeven period is considered good?",
      "a": "A breakeven under 24-36 months is generally considered worth it for most homeowners, since most people stay in a home or keep a loan far longer than that."
    },
    {
      "q": "Does resetting the loan term matter?",
      "a": "Yes — refinancing into a new 30-year term restarts amortization, so even at a lower rate you may pay more total interest if you were already many years into your current loan; consider matching your remaining term."
    },
    {
      "q": "Should I include rolled-in closing costs?",
      "a": "If you roll closing costs into the loan balance instead of paying cash, add that amount to your new balance and rerun the numbers — it changes both the payment and the breakeven math."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/mortgage-15-vs-30-year",
    "https://www.revenuelab.fyi/toolbox/heloc-vs-cash-out-refi"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Refinance vs Keep Mortgage Calculator (https://www.revenuelab.fyi/toolbox/refinance-vs-keep-mortgage-cost)"
}