Refinancing $400,000 from 8% to 6.5%: Save $407/mo
Refinancing a $400,000 mortgage from 8% to 6.5% saves $407/month and breaks even in 8 months. Total savings of $143,443. Free refinance calculator.
Frequently asked questions
When does it make sense to refinance a mortgage?
Refinancing usually makes sense when you can lower your rate enough that the monthly savings recover the closing costs within a few years — your break-even point. The larger the rate drop and the longer you'll stay, the more it's worth it.
How much does it cost to refinance?
Closing costs typically run 2–5% of the loan balance, covering appraisal, origination, title, and other fees. This calculator compares your monthly savings against these costs to find the break-even point.
Does refinancing reset the loan term?
Yes — refinancing typically starts a new loan term. A lower monthly payment can still mean paying more total interest if you reset a 20-year balance back to 30 years. Compare total interest, not just the monthly payment.