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Refinance vs stay

Same engine as the refinance calculator: cash-flow break-even versus keeping the current loan. Ignores points, taxes on costs, and credit overlays.

Loans

Principal still owed on the loan you would refinance. Not the original amount.
$
Annual percentage rate on the existing fixed loan, used for the stay-the-course payment.
%
Remaining term on the current loan, in years. Used for the stay payment and interest total.
Quoted rate on the refinance. Points and lender credits are not modeled separately — fold them into closing costs if you want.
%
Term of the new loan in years. A longer term can cut the payment while increasing total interest.
Cash to refinance: origination, title, recording, and similar. Cash-flow break-even is this amount divided by monthly savings.
$

Cash-flow break-even

2 years

Stay $2,228/mo vs refinance $1,970/mo

Stay payment

$2,228

Refi payment

$1,970

How this refinance vs stay compare is built

One path keeps the current loan until the remaining term ends. The other replaces it with a new rate, term, and closing costs. Both use the same amortization libraries as the mortgage tools. The verdict is cash-flow (new vs old payment), months to recoup costs, and remaining interest.

Staying is correct when you will not keep the loan past break-even, when closing costs are large relative to the rate drop, or when a new 30-year term would cost more interest than finishing the current schedule. Refinancing is correct when you will keep the loan, the rate drop is real after costs, and you are honest about term length (a 15-year refi can raise the payment and still win on interest).

Taxes and insurance usually stay put unless the new loan changes escrow. PMI may drop if you have gained equity; this compare uses the loan inputs you type.

Cash-out (a larger new balance) is not the same as rate-and-term. Put the balance you will actually owe after closing into the new loan. Points paid in cash belong in closing costs; points rolled in belong in the new principal.

Related calculator: refinance break-even. Guide: refinance break-even basics.

Frequently asked questions

Read refinance break-even basics

When does refinance win?

When the new payment is lower and you will keep the loan past cash-flow break-even (closing costs ÷ monthly savings). A longer new term can still cost more interest overall.

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