Refinance Calculator

Original Loan Amount

Original Interest Rate

Original Loan Term

# of Payments Made ( Current Loan Period )

New Interest Rate

New Term

This calculator is being provided for educational purposes only. The provided values for interest rates are examples only and do not reflect Churchill Mortgage Product terms & offers. The results are estimates that are based on information you provided and may not reflect Churchill Mortgage Product terms. The information cannot be used by Churchill Mortgage to determine a customer's eligibility for a specific product or service. All financial calculators are provided by a third-party and are not controlled by or under the control of Churchill Mortgage. Churchill Mortgage is not responsible for the content, results, or the accuracy of information. These calculations are hypothetical examples designed to for illustration purposes only. Consult a Home Loan Specialist for more specific information regarding payments, terms, etc.

Refinancing your mortgage can lower your interest rate, reduce your monthly payment, or help you pay off your loan faster — but it usually comes with some upfront costs.

That’s where the Refinance Break-Even Calculator comes in.

What This Calculator Does

It helps you figure out how long it will take for your monthly savings to cover the cost of refinancing — this is called your break-even point.

Once you reach that point, every month after is pure savings.

If you're planning to stay in your home longer than your break-even point, refinancing could be a smart move.
If not, you may want to wait or explore other options.

Use this calculator to get a clearer picture — and make a confident choice that fits your life and future goals.

What is a refinance break-even point?

The break-even point is how long it takes for the money you save from refinancing to catch up with the cost of doing it.

Once you pass that point, the savings become real, and stay in your pocket.

How does this breakeven calculator work?

You enter a few details, like your current loan info, the new rate you're considering, and the cost to refinance.

The calculator does the math and shows you how many months it will take before the savings outweigh the cost.

Why is the break-even point important?

It helps you decide if refinancing makes sense.

If you plan to stay in your home longer than the break-even point, refinancing could save you money.

If you're moving soon, it might not be worth it.

What costs are included in a refinance?

Refinancing usually comes with closing costs — like lender fees, title, appraisal, and more.

These can add up to 2–6% of your loan amount.

What can affect my break-even point?

Several things can change it:

Your new interest rate
How much you’re saving each month
The total cost to refinance
Whether you roll costs into the loan or pay them upfront

How do I know if refinancing is right for me?

It depends on your goals.

If you want lower monthly payments, to pay off your home faster, or to tap into your equity — refinancing might help.

The calculator is a great first step, and a Churchill Home Loan Specialist can help you look at your full picture.

Lower Your Monthly Mortgage Payment

Interest rates are notorious for fluctuating. So, if rates have gone down due to market conditions since you last purchased or refinanced your home loan, it may make sense to refinance.

Because interest rates are directly tied to home much you pay on your overall mortgage, lower rates typically mean lower monthly payments. Even if the length of your loan stays the same, you can save hundreds to thousands off your total loan payment.

Adjust the Length of Your Loan

If you’ve ever wanted to cut the length of your mortgage in half to get you on the right track to paying off your home loan as fast as possible, you can do that by refinancing from a 30-year to a 15-year mortgage. Your monthly payments will be higher, but don’t let that scare you! It just means you’re paying more toward your principal each month.

Typically, interest rates are lower on shorter loan terms as well! This is a great option to maximize return on your investment faster and plan for debt-free homeownership.

Remove Mortgage Insurance

Home values have risen dramatically over the past few years. If your original down payment was less than 20%, you’re likely paying mortgage insurance. The good news is, your home likely has enough equity to refinance and remove your monthly mortgage insurance payments. This could save you a lot of money!

A home appraisal will serve as validation of your current home value and if your loan amount is 80% or less of the current appraised value, your mortgage insurance should be dropped.

Switch Your Loan Type

FHA ➡️ Conventional

If your current mortgage is with the FHA (Federal Housing Authority), you’re paying a premium for mortgage insurance in addition to other costs associated with this type of loan.

As home values continue to rise, it may be a good time for you to look at switching from your FHA loan to a conventional loan.

ARM ➡️ Conventional

If you currently have an Adjustable Rate Mortgage (ARM) and you’re looking to switch to a fixed-rate loan before your interest rate goes up, a conventional loan could be a right fit for you.

Monthly payments on an ARM loan change due to adjustments in the interest rates due to the market. The unpredictability of this loan can be unnerving for those who want the comfort of a consistent payment to budget for each month.

Make Upgrades to Your Home

If your current mortgage has a really low interest rate, staying put may be a wise financial decision. But you don’t have to compromise on the quality or future value of your home. With a few upgrades, you can enjoy your current home more and maintain its future marketability down the road.

Here's the top 5 home improvements to help provide the best long-term financial return:

Hardwood Floor Refinish: 147% ROI
New Wood Flooring: 118% ROI
Insulation Upgrade: 100% ROI
New Roofing: 100% ROI
New Garage Door: 100% ROI

Reduce High Interest Debt

If you’re feeling locked in by a low interest rate on your current mortgage, but you’re also carrying higher interest debt balances, your “blended” rate may be much higher than you think.

Blended Rate Table-1

If this is the case, it may be worth looking into your refinancing options to reduce your high-interest debt like credit cards and help with your monthly cash flow to get you back on track with your budget.

Refinance: Refinancing means trading your old home loan for a new one. It’s kind of like getting a fresh start. You might do it to lower your monthly payment, pay off your home faster, or use some of your home’s value for other things. It’s one way to make your loan fit your life a little better.
Breakeven Period: This is how long it takes for the money you save to catch up with the cost of refinancing. If it costs $3,000 to refinance and you save $300 a month, you’ll break even in 10 months. After that, the savings are yours to keep. It helps you see if the choice is worth it.
Loan Amount: This is how much money you’re borrowing with the new loan. It might be close to what you still owe on your home. Or it could be more, if you're taking cash out for other needs. The loan amount helps the calculator figure out your monthly payment.
Interest Rate: This is the fee the lender charges to let you borrow money. It’s a small percent that’s added to your loan over time. The lower your interest rate, the less you’ll pay in the long run. A better rate means more money stays in your pocket.
Loan Term: The loan term is how long you’ll take to pay back the loan. Common terms are 30 years or 15 years. A shorter term usually means higher payments, but you’ll pay off the home faster and save more in the end. A longer term makes payments smaller, but it takes more time. You get to pick what works best for your life.

Refinance Calculator

Thinking About Refinancing? Know When It Pays Off.

What This Calculator Does

Refinance Breakeven FAQs

Reasons to Refinance

Common Refinance Terms

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