The refinance calculator that will tell you not to.
A lower rate is not the same as a cheaper loan. Restart a 30-year clock you're seven years into and you can drop your payment by $656 a month — while paying $107,000 more in interest. We'll show you both numbers.
A rate and term refinance swaps your mortgage for a new one at a different rate or term, with no cash taken out. It makes sense when the monthly saving repays the closing costs before you move — and when the new loan doesn't quietly cost more in total interest. Most calculators only check the first. The second is where the money disappears.
Should you refinance? Let's find out.
This tool is allowed to say no. Most of the ones you've used are not.
Your payment drops $656 a month, which feels like a win. It isn't: restarting the clock adds $107,359 in total interest. Match your remaining 23 years instead and you keep most of the saving without paying for it twice.
Estimates only, not a commitment to lend. Assumes closing costs are financed. Actual costs, rate and terms depend on a full application.
A lower payment is not a cheaper loan.
Every refinance ad shows you one number: the monthly saving. Here is the number they leave out — what restarting the clock actually costs you.
This is the number the ads ignore. It is the whole story.
Resetting to a new 30-year drops your payment $713 a month — and costs you $95,880 in extra interest. Match your remaining 23 years instead: the payment is $3,852 and you save $94,781 against doing nothing. Same rate. Different clock.
Illustrative only. Compares total remaining interest on your existing loan against total interest on a new loan of the same balance plus financed costs. Real quotes depend on credit, equity, occupancy and market pricing. Not a commitment to lend.
Nobody offers you the short one.
Ranked on lifetime interest — not on payment. The winner is almost never the one you get quoted.
Same balance, same new rate, costs financed. Ranked on total interest paid over the life of the loan. Illustrative only.
Straight answer: should you?
Four taps. This page sells refinances and will still tell you to keep the loan you have.
Yes — this one works.
A 1% improvement, and you're staying long enough for it to pay back around month 30. The math is clean. We'll still price the shorter term next to the longer one so you can see both.
From here to the keys — five steps.
No mystery, no call centre, no "we'll get back to you." Every step is exactly what happens inside it.
Four questions. No credit pull, no sign-up, no obligation.
~60 secondsWhat happensOne application goes to dozens of wholesale lenders. They compete for you.
Same dayWhat happensUnderwritten against real documents — not a soft letter any lender prints.
~24 hoursWhat happensListing agents call Adriana. She picks up. That is worth more than a bid.
Your timelineWhat happensConditions cleared, docs signed, funded. And she runs the break-even honestly — sometimes the answer is to keep your loan.
To the dateWhat happensThree refinances. We stopped one.
Real numbers, real verdicts.
His payment would have dropped $610. He was moving in 14 months. We sent him away.
Another lender quoted her a new 30-year. Lower payment, yes. And six figures more interest.
He asked for a lower payment. He left with a higher one — and $289,000 less interest.
ADReal Estate & Mortgage Broker · GRI
Milpitas, California · Serving all 58 counties
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A licensed broker who answers her own phone.
"A broker who will tell you no is the only kind whose yes means anything."
Everything people actually ask.
What is a rate and term refinance?
A rate and term refinance replaces your existing mortgage with a new one at a different interest rate, a different term, or both — without taking any cash out. Because you are not increasing the loan balance, lenders price it better than a cash-out refinance and the qualifying requirements are lighter.
When does refinancing actually make sense?
When the monthly saving pays back the closing costs before you sell or refinance again — and when the new loan does not quietly cost you more in total interest. Most people only check the first condition. The second one is where the money is lost.
What is the break-even point?
Closing costs divided by monthly savings. If your costs are $9,000 and you save $600 a month, you break even in 15 months. If you plan to move in a year, refinancing loses you money no matter how good the rate looks.
Why might a lower rate still cost me more?
Because restarting a 30-year clock adds years of interest back onto a loan you had already partly paid off. Seven years into a 30-year mortgage, refinancing into a brand-new 30-year can lower your payment and still cost you six figures more in total interest. The fix is to refinance into a term that matches the years you have left.
How much does a refinance cost?
Typically 2% to 5% of the loan amount — appraisal, title, escrow, lender fees, and prepaid items. These can often be rolled into the loan, which does not make them free; it means you finance them and pay interest on them.
Is there such a thing as a no-cost refinance?
Not really. In a so-called no-cost refinance the lender covers your closing costs and recovers them through a higher interest rate, or the costs are added to your balance. The money always comes from somewhere. Ask to see both versions priced side by side.
How much lower does the rate need to be?
There is no universal rule, and the old advice about 1% is meaningless. What matters is whether the savings clear the costs within your time horizon, and whether the total interest goes down. On a large California balance, even a 0.5% improvement can pay back quickly. On a small balance it may never.
Should I shorten my term when I refinance?
Very often, yes — and almost no one is offered it. Refinancing from a 30-year into a 20-year or 15-year at a lower rate can cut your lifetime interest dramatically, sometimes for a payment close to what you already pay. We will always price the shorter term alongside the longer one.
Will refinancing hurt my credit?
There is a hard inquiry and a new account, so a small temporary dip is normal. Rate-shopping inquiries within a short window are typically treated as a single inquiry by the scoring models. The effect is minor and short-lived compared with the money at stake.
Can I refinance if my home value dropped?
It depends on the resulting loan-to-value. A rate and term refinance generally needs sufficient equity, though FHA and VA offer streamline programs with lighter requirements. If you are underwater, tell us — there are still options, and pretending otherwise wastes your time.
Stop estimating. Get the real number.
Four questions, no credit pull. You'll get your payment, your options, and an honest read on the best fit.