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Summit CrestMortgage

Calculator 04

Refinance & Break-Even

A new rate against what it costs to get it, and the month it pays itself back. Illustrative figures only — nothing here is a quote.

The loan you have
What you owe today, not the original amount
$
%
years
The loan you are considering
Illustrative, not a quote
%
years
Origination, appraisal, title, recording
$
Paying back the closing costsFirst 10 years
-$10k$5k$20k$35k$50kcloseyr 2yr 4yr 6yr 8yr 10Net positionbreak-even, month 18
Net position (solid)

The chart starts below the zero rule by exactly the closing costs. Where it crosses back over, the refinance has paid for itself.

How long the debt lasts
$0$125k$250k$375k$500kyr 1yr 8yr 16yr 23yr 30Keep currentRefinanced
Keep current loan (dotted)Refinance (solid)

If the solid line hits zero later than the dotted one, the lower payment is partly bought with extra years.

Change in monthly payment

$364

Lower each month, before closing costs.

  • Payment now$2,424
  • Payment after$2,060
  • Break-evenmonth 18
The whole picture
  • Closing costs$6,500
  • Break-even in1 yr 6 mos
  • Interest, keep current$416,396
  • Interest, refinanced$401,738
  • Lifetime difference$8,158
  • Debt lasts30 yrs
This refinance extends the debt. The new term runs longer than what is left on the current loan, so part of the monthly saving is bought with extra years rather than with a better rate. The lifetime difference above already accounts for that.
Schedule of the refinanced loan
Amortisation schedule showing the payment, principal, interest, running interest total and remaining balance for each period.
MonthPaymentPrincipalInterestInterest to dateBalance
1$2,060$332$1,728$1,728$339,668
2$2,060$334$1,727$3,455$339,334
3$2,060$335$1,725$5,180$338,999
4$2,060$337$1,723$6,903$338,662
5$2,060$339$1,722$8,625$338,323
6$2,060$341$1,720$10,345$337,982
7$2,060$342$1,718$12,063$337,640
8$2,060$344$1,716$13,779$337,296
9$2,060$346$1,715$15,494$336,950
10$2,060$348$1,713$17,206$336,603
11$2,060$349$1,711$18,917$336,253
12$2,060$351$1,709$20,627$335,902
13$2,060$353$1,708$22,334$335,549
14$2,060$355$1,706$24,040$335,195
15$2,060$356$1,704$25,744$334,838
16$2,060$358$1,702$27,446$334,480
17$2,060$360$1,700$29,146$334,120
18$2,060$362$1,698$30,845$333,758
19$2,060$364$1,697$32,541$333,394
20$2,060$366$1,695$34,236$333,028
21$2,060$367$1,693$35,929$332,661
22$2,060$369$1,691$37,620$332,291
23$2,060$371$1,689$39,309$331,920
24$2,060$373$1,687$40,996$331,547

Payments 1–24 of 360

Illustrative figures. Every number on this page — including the rates in the default values — is an illustration produced from the inputs above. Nothing here is a quote, a rate lock, an APR, a Loan Estimate or an offer of credit.

What this page assumes. The same balance carried into the new loan, closing costs paid in cash at closing rather than rolled into the balance, fixed rates on both loans, and no cash taken out. Escrow, mortgage insurance and any rate-buydown points are not modelled here.

This calculator provides estimates for educational purposes only. Results are not a Loan Estimate, pre-approval, or commitment to lend, and may not reflect taxes, insurance, HOA dues, or other costs. Contact a loan officer for an accurate quote.

Rates shown are for illustrative purposes only, are not a quote or guarantee, and do not reflect a specific offer. Actual rates depend on credit score, loan amount, loan-to-value, occupancy, and other factors, and change daily. Contact us for a personalized rate quote.

Share this resultSection 03

Your inputs live in this page’s web address. Copy the link and whoever opens it lands on exactly these numbers — no account, no saved data, nothing tracked.

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Nothing is sent on this demonstration site. There is no mail server behind this button, no address is stored, and no one is emailed. It is here to show the interaction. To actually send these figures, usethis email link, which opens your own mail app with the link already in it.

That is the thank-you state.

And to be completely clear: no email was sent and your address was not stored or transmitted anywhere. This is a demonstration site. To send the figures for real, usethis email link.

Talk it throughSection 04

Have a loan officer look at these numbers

A calculator can only work with what you type. If you would like a person to sanity-check the assumptions, this is the form a real site would use.

This is a demonstration site. Submitting this form validates the fields and shows you the thank-you state, and that is all it does. Nothing is stored, nothing is transmitted, no one receives it and no one will call you. On a live site this exact form posts through a single function (submitLead()) into a CRM or webhook.

Thank you — that is the whole interaction.

Your details were validated and then discarded in your own browser.Nothing was stored and nothing was sent, so please do not wait for a call. If you would like to reach a real person about a real loan, the contact details on this site are the honest route.

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Calculator FAQ

Questions about refinancing

How does a refinance break-even work?

Refinancing costs money on day one and saves money every month afterwards. The break-even is the month where the accumulated saving finally covers what you paid to get it. Before that month you are behind; after it you are ahead. If you expect to sell or refinance again before the break-even, the deal loses money no matter how good the rate looks.

When does refinancing actually make sense?

When you will hold the loan comfortably past the break-even month, and when the new loan does not quietly undo the saving by stretching the term back out. A rate drop large enough to matter, a plan to stay put, and a term you are honest about are the three things that decide it — not the headline rate on its own.

What are typical refinance closing costs?

Commonly in the region of 2% to 5% of the loan amount, covering origination, appraisal, title work and recording. A "no closing cost" refinance does not remove them; it pays them through a higher rate or by adding them to the balance. Either way they show up, so put a real figure in the closing costs field rather than zero.

Does refinancing reset my loan term?

It can, and this is the trap. Refinancing 26 remaining years into a fresh 30-year loan lowers the payment partly because you have given yourself four extra years to pay. The balance chart on this page shows that directly: if the refinanced line reaches zero later than the current one, you are paying for longer. Choosing a shorter new term avoids it.

Why is the lifetime interest figure sometimes worse even when I save monthly?

Because the two numbers answer different questions. The monthly saving is about cash flow now; the lifetime figure is about total cost, and a longer term can increase total interest even at a lower rate. Both are shown here on purpose. Which one matters more depends on whether you need room in the budget or the lowest total cost.

Is the rate in this calculator a quote?

No. Every rate on this page is an illustrative default you can change, not an offer, a lock or an APR. Real pricing depends on credit, loan-to-value, occupancy, loan amount and the day you ask. Nothing on this demonstration site can quote you.

Worth a second opinion?

Bring the closing cost estimate you were given and a loan officer will tell you what it actually buys.

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