Mortgage Refinance Calculator
A lower payment can still cost more in total.
Work out Mortgage Refinance. A lower payment can still cost more in total. States the assumption instead of hiding it.
Monthly saving
160.26
Breaks even on the fees after 18.7 months, and saves 48079 over the life of the loan.
The trap is comparing the new monthly payment against the old one. A lower rate over a fresh thirty-year term almost always lowers the payment and can still cost far more in total, because the clock resets — which is why this compares lifetime cost as well. The break-even month tells you how long you have to stay for the fees to be worth paying. If you might move or remortgage again before then, the saving never actually arrives. Keeping the remaining term rather than resetting it is what turns a rate cut into a real saving. Refinancing to the same end date at a lower rate captures the whole benefit; refinancing to a new full term spreads it thinner and adds years.
How the Mortgage Refinance Calculator works
Refinancing compared on total cost as well as monthly payment, with the break-even month on the fees. Resetting the term lowers the payment and can raise the lifetime cost substantially.
Also known as: should i remortgage · refinance break even point · is a lower rate worth the fees · remortgage savings calculator
Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.
Frequently asked questions
When is refinancing worth it?
When the lifetime cost falls and you will stay past the break-even month on the fees. A lower monthly payment on its own is not the test — a longer term produces one almost automatically.
What is the break-even point?
Fees divided by the monthly saving. If you might move or remortgage again before then, the saving never actually arrives and the fees are simply spent.
Why does resetting the term matter so much?
Because interest is front-loaded. Refinancing 15 remaining years into a fresh 30-year term at a lower rate can cut the payment substantially and still cost tens of thousands more overall.
Should I keep the same end date?
If you can afford to, yes. Refinancing to the same remaining term at a lower rate captures the whole benefit of the rate cut; extending the term spreads it thinner and adds years of payments.
What about early repayment charges?
They can wipe out the benefit entirely. Add them to the fees before running the break-even, and check whether waiting until a fixed period ends changes the answer.
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