Refinance vs Extra Payment Calculator
Compare keeping your loan while paying extra each month versus refinancing including cash closing costs.
Results
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Assumptions
- Net cost for extra payments = interest until payoff.
- Net cost for refinance = new-loan interest + cash closing costs.
- Taxes/insurance/points beyond the fee field are omitted.
How it works
Simulates both paths with standard amortization and optional extra principal.
FAQ
Why might extra payments win?
They avoid closing costs and can shorten the loan without resetting the term.
Why might refinance win?
A large rate drop can cut interest more than fees cost.
What does break-even mean here?
Roughly how many months of payment savings it takes to recover cash closing costs.
Should I refinance based on this alone?
No. Credit, fees, taxes, and how long you keep the loan also matter.
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Estimates only. See Disclaimer.