Refinance savings calculator
How much could you save refinancing from 6.5% to 6.0%?
A half-point rate drop can lower principal and interest, but the decision depends on your balance, remaining term, refinance costs, and how long you keep the new loan.
The short answer
On a $400,000 balance with 25 years remaining, dropping from 6.5% to 6.0% saves about $124 per month in principal and interest.
With $5,000 of recoverable refinance costs, the simple break-even is about 41 months. Your result changes with the balance, remaining term, new term, mortgage insurance, financed costs, and other payment components.
Use your numbers
Calculate the payment change and break-even.
This keeps the remaining term the same so the rate change is easier to isolate.
What the calculator includes
It compares scheduled principal-and-interest payments on the same balance and remaining term, then subtracts the refinance costs from the payment savings over your selected timeline.
What it does not include
- A different new loan term or amortization schedule
- Mortgage insurance being added or removed
- Taxes, homeowners insurance, HOA dues, or escrow changes
- Cash out, balance changes, prepaid interest, or financed closing costs
- Tax consequences or the opportunity cost of cash
Official sources
Illustrative calculation only. It is not a quote, approval, or recommendation to refinance. Confirm the complete new loan terms and costs with a licensed mortgage professional.