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Rent vs. Buy
High-fidelity wealth comparison over 30 years.
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Analysis Report
Your Refinance Verdict: Analyzing...
Based on current market trends and your financial profile, our engine determines if a refinance yields significant long-term wealth accumulation.
Total Potential Savings
$0.00
Projected over new term
Break-Even Point
0 Months
Recovery of closing costs
history
Current Mortgage
$
26
payments
Closing Cost Lab
Appraisal & Title
Origination Fee
Other Costs
Total Estimated
$7,550
Copies current inputs to your clipboard
New Proposal
trending_down
Proposed Refinance
30
New Monthly Payment
$2,115.00
SAVING $335/MO
Current Payment
$2,450.00
Recovery Timeline
update
Time to Recoup: 1.8 Years
Every month after Month 22 represents pure monthly profit for your household budget.
Closing Paid
Full Recovery
Profit Zone
Cumulative Interest Comparison
CURRENT LOAN
REFINANCED
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Transparency Note: Methodology
Our 'Net Benefit' calculation factors in the Total Interest Differential over the life of the loan and compares it against the up-front capital outlay.
We account for the Opportunity Cost—the theoretical returns you would have earned if you invested the closing costs in a diversified index fund (at a conservative 6% annual return) instead of refinancing.
Calculation Formula
Net Benefit = (Σ Int_Old - Σ Int_New) - (Costs + Opportunity Cost)
Adjusted for inflation at a 2.5% annualized rate for long-term values.
Mortgage Refinance Frequently Asked Questions
What is the break-even point for refinancing? expand_more
The break-even point is the month when total monthly savings from a lower rate exceeds the upfront closing costs. For example, if refinancing costs $3,000 and saves $150/month, break-even occurs in 20 months. After break-even, all savings are pure benefit. This calculator includes opportunity costs to show the true net benefit.
Should I include closing costs in the break-even calculation? expand_more
Absolutely. Closing costs (legal fees, appraisals, title insurance) typically range from 1-3% of the loan amount. Many people ignore these upfront costs, making refinancing seem more attractive than it truly is. This calculator forces you to account for them—they must be recovered through monthly interest savings.
What is opportunity cost in refinancing? expand_more
Opportunity cost is what you could have earned if you invested the closing costs instead of refinancing. For example, $3,000 in closing costs could theoretically grow to $4,300 over 5 years at 6% annual returns. This calculator accounts for this opportunity cost to show your true net benefit from refinancing.
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