What are typical refinance closing costs?

2-5% of the loan amount. On a $300,000 refi, expect $6,000-$15,000 in costs unless you pick a no-closing-cost refi (which typically has a higher rate).

Should I do a no-closing-cost refi?

Only if you’re not staying long enough to amortize the costs. The higher rate usually makes it more expensive over time.

How long does a refinance take to close?

Typically 30-45 days from application. Faster if you have all documents ready (recent pay stubs, 2 years tax returns, bank statements, retirement statements) and the appraisal is straightforward. Streamline refinances (FHA Streamline, VA IRRRL) can close in 14-21 days because they skip income verification and appraisal in many cases. Cash-out refinances take longer (45-60 days) because more underwriting scrutiny. Lock your rate at application; rate locks typically last 30-60 days. If closing slips past lock expiration, you may pay extension fees or get the worse of locked rate vs. current.

What's the difference between rate-and-term refi and cash-out refi?

Rate-and-term: refinance to a lower rate or different term, no cash withdrawn. Lower closing costs, faster, lower rate (closer to purchase rate). Cash-out: borrow more than current balance, take the difference in cash. Higher rate (typically 0.25-0.5% premium), more underwriting scrutiny, max 80% LTV typically. Used for home improvements (often tax-deductible interest), debt consolidation, or major expenses. Beware: cash-out refi increases your loan balance and total interest paid; only worthwhile if the cash funds something with higher return than the loan rate.

When is a refinance not worth it?

When closing costs exceed expected savings during your remaining time in the home. Calculate: monthly savings × months remaining vs. closing costs. Example: refi saves $200/month, closing costs $6,000. Break-even: 30 months. If you'll move within 30 months, don't refinance. Other don't-refinance scenarios: rate gap under 0.5%, you have less than 5 years left on the current mortgage (refi resets clock), or refinancing forces you into PMI you'd otherwise avoid (e.g., your home value dropped below 80% LTV).

Can I refinance if my home value dropped?

If LTV is over 80% with a conventional loan, you'll likely face PMI on the new loan. Check streamline refi options: FHA Streamline (existing FHA borrowers, no appraisal in many cases, no LTV check), VA IRRRL (existing VA borrowers, no appraisal, no income verification). HARP-style programs ended in 2018 but FHFA's RefiNow and Refi Possible programs help low/moderate-income borrowers refi underwater. If conventional isn't possible, contact your current servicer about loan modification rather than refi.

Money & Finance · Free tool

Refinance Calculator

Calculate your monthly and lifetime savings from a mortgage refinance. Compare your current payment to a new option instantly — a free online calculator, no signup.

Updated June 2026

Home price ($)Down payment (%)Rate (%)Term (years)Property tax (% / yr)Insurance ($ / yr)HOA ($ / mo)PMI (% / yr) (waived at 20%+ down)

Monthly payment (all in)

$2,251

P&I

$1,751

Property tax

$400

Insurance

$100

Total cost over 30 years

Down payment: $100,000
Loan amount: $300,000
Total interest: $330,259
Total cost of home: $910,259

P&I uses the standard fixed-rate amortization formula. PMI assumes conventional rules (drops off when balance ≤ 80% of original price). Taxes, insurance, and HOA are held flat — in reality they drift up over time.

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What it does

A refinance calculator that lets you model a new mortgage alongside your current one. Use the inputs as the new-loan numbers: the refi’s principal, the new rate, and the new term. Compare the new monthly and total interest to what you’re paying today, then subtract closing costs to find your true break-even point.

Rule of thumb: if the rate drop is 0.75% or more and you plan to stay in the home long enough to recoup closing costs (usually 3-5 years), a refi typically pays off. Below that threshold, or with a short expected stay, it often doesn’t.

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Example input & output

Input

New principal: $300,000
New rate: 5.75%
New term: 30 years

Output

New P&I: $1,751/mo
New total interest (30 yrs): $330,309
Break-even (assuming $6,000 closing): ~36 months vs current 6.75% loan

A 1% rate drop on $300,000 saves about $170/month — roughly $60k over 30 years.

How to use it

Enter the loan balance you’d refi (usually < original principal).
Enter the new rate you’re being quoted.
Pick a new term (keeping 30 years resets the clock; a 15 or 20 shortens it).
Compare the new PITI and total interest to your current loan.
Subtract closing costs to find break-even.

When to use this tool

Rate has dropped 0.75%+ since original loan.
Switching loan type (ARM to fixed, FHA to conventional to drop MIP).
Removing a co-borrower via a refi.

When not to use it

If you plan to move within 1-2 years — closing costs likely eat the savings.
If cash-out is for consumer spending rather than a real investment.

Common use cases

Deciding whether to refinance into a lower rate.
Switching from a 30-year to a 15-year while keeping roughly the same monthly.
Cash-out refinance math (principal goes up; interest goes up too).

Frequently asked questions

What are typical refinance closing costs?: 2-5% of the loan amount. On a $300,000 refi, expect $6,000-$15,000 in costs unless you pick a no-closing-cost refi (which typically has a higher rate).
Should I do a no-closing-cost refi?: Only if you’re not staying long enough to amortize the costs. The higher rate usually makes it more expensive over time.
How long does a refinance take to close?: Typically 30-45 days from application. Faster if you have all documents ready (recent pay stubs, 2 years tax returns, bank statements, retirement statements) and the appraisal is straightforward. Streamline refinances (FHA Streamline, VA IRRRL) can close in 14-21 days because they skip income verification and appraisal in many cases. Cash-out refinances take longer (45-60 days) because more underwriting scrutiny. Lock your rate at application; rate locks typically last 30-60 days. If closing slips past lock expiration, you may pay extension fees or get the worse of locked rate vs. current.
What's the difference between rate-and-term refi and cash-out refi?: Rate-and-term: refinance to a lower rate or different term, no cash withdrawn. Lower closing costs, faster, lower rate (closer to purchase rate). Cash-out: borrow more than current balance, take the difference in cash. Higher rate (typically 0.25-0.5% premium), more underwriting scrutiny, max 80% LTV typically. Used for home improvements (often tax-deductible interest), debt consolidation, or major expenses. Beware: cash-out refi increases your loan balance and total interest paid; only worthwhile if the cash funds something with higher return than the loan rate.
When is a refinance not worth it?: When closing costs exceed expected savings during your remaining time in the home. Calculate: monthly savings × months remaining vs. closing costs. Example: refi saves $200/month, closing costs $6,000. Break-even: 30 months. If you'll move within 30 months, don't refinance. Other don't-refinance scenarios: rate gap under 0.5%, you have less than 5 years left on the current mortgage (refi resets clock), or refinancing forces you into PMI you'd otherwise avoid (e.g., your home value dropped below 80% LTV).
Can I refinance if my home value dropped?: If LTV is over 80% with a conventional loan, you'll likely face PMI on the new loan. Check streamline refi options: FHA Streamline (existing FHA borrowers, no appraisal in many cases, no LTV check), VA IRRRL (existing VA borrowers, no appraisal, no income verification). HARP-style programs ended in 2018 but FHFA's RefiNow and Refi Possible programs help low/moderate-income borrowers refi underwater. If conventional isn't possible, contact your current servicer about loan modification rather than refi.

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