Question 1

When does refinancing make financial sense?

Accepted Answer

Refinancing makes sense when you can lower your rate by at least 0.5–1%, you plan to stay long enough to recoup closing costs (typically 2–4 years), and your credit has improved since your original loan.

Question 2

How much does it cost to refinance a mortgage?

Accepted Answer

Closing costs typically run 2–5% of the loan amount — on a $350k loan that's $7,000–$17,500. Some lenders offer no-closing-cost refinances by rolling fees into the rate.

Question 3

What is a break-even point on a refinance?

Accepted Answer

The break-even point is how many months your monthly savings take to cover closing costs. If you save $200/mo and paid $4,800 in closing costs, break-even is 24 months. If you plan to move before then, refinancing may not make sense.

Question 4

Can I refinance if my home value has dropped?

Accepted Answer

It depends on your equity. Most conventional refinances require at least 20% equity. FHA and VA loans have streamline refinance options with less equity required.

Question 5

How does refinancing affect my taxes?

Accepted Answer

Mortgage interest on a refinance is generally tax deductible if you itemize. Consult a tax advisor for your specific situation — MorgCalc is a calculation tool, not tax advice.

Refinance Calculator —
is refinancing worth it for you?

Current loan vs. refinanced loan

Frequently Asked Questions

Refinance Calculator —is refinancing worth it for you?

Current loan vs. refinanced loan

Frequently Asked Questions

Refinance Calculator —
is refinancing worth it for you?