Why does my lifetime interest sometimes go up?

Resetting a 25-year remaining term back to 30 years means more total months of interest, even at a lower rate. Match terms (or pay extra) to capture the savings without restarting the clock.

Should I roll closing costs into the loan?

Rolling them in trades up-front cash for a slightly higher principal. It avoids cash to close but increases interest. Use the toggle to compare.

Refinance Calculator

See whether refinancing makes sense given your rate, term, and how long you plan to stay. Both monthly savings and total cost are shown side-by-side.

Refinance Comparison

Generated … · Assumption set 2026-04-30

New monthly payment (P&I)

$1,589.81/mo

Monthly savings

$389.17

Breakeven

16 mo

1.3 years

Cash to close

$6,000.00

Lifetime interest savings

$21,364.17

Estimated net savings over 84 months: $26,690.28.

Refinance comparison chart

Show data table

Scenario	Monthly	Total interest
Current loan	$1,978.98	$313,695.35
Refinanced loan	$1,589.81	$292,331.18

Assumptions used

Assumption set 2026-04-30

Current balance: $280,000user input
Current monthly payment (P&I): $1,978.98 (calculated)calculated
Annual interest rate: 7.00%user input
Remaining term: 25 yearsuser input
New rate: 5.500%user input
New term: 30 yearsuser input
Closing costs: $6,000user input
Roll closing costs: No — paid up frontuser input
Expected months in home: 84 monthsuser input

How this calculator works

A refinance replaces your current mortgage with a new one — usually for a different rate, term, or cash-out amount. The right choice depends on your monthly savings, the closing costs, how long you'll stay, and whether the new term resets and adds lifetime interest.

Reviewed for calculation accuracy and clarity by Mortgage Well calculation team · April 30, 2026

When to use this

Rates have dropped since you took out your current mortgage.
You want to switch loan type (ARM to fixed, jumbo to conforming, etc.).
You're considering cash-out refinancing for renovations or debt consolidation.

Methodology

We project both loans to the end of their respective terms. The current loan keeps its remaining balance and rate; the new loan absorbs any rolled-in closing costs and cash-out amount. Breakeven divides cash needed at closing by monthly savings.

monthly_savings = current_payment - new_payment
breakeven_months = cash_to_close / monthly_savings  (null if savings <= 0)
lifetime_interest_diff = new_loan_total_interest - current_loan_total_interest

Assumptions

Current monthly payment defaults to a calculated value from balance/rate/term but can be overridden.
The expected-holding-period field caps net-savings projection at the time you plan to keep the loan.
Closing costs are estimates — request a Loan Estimate for actual figures.

Example

If you save $250/month and pay $6,000 in closing costs, you'll break even at month 24. Stay longer than that and the refinance pays off; sell or refinance again sooner and you're behind.

Frequently asked

Why does my lifetime interest sometimes go up?: Resetting a 25-year remaining term back to 30 years means more total months of interest, even at a lower rate. Match terms (or pay extra) to capture the savings without restarting the clock.
Should I roll closing costs into the loan?: Rolling them in trades up-front cash for a slightly higher principal. It avoids cash to close but increases interest. Use the toggle to compare.

Estimates only. This calculator is not a loan offer, loan approval, official Loan Estimate, Closing Disclosure, tax advice, legal advice, or financial advice. Actual payments, rates, taxes, insurance, mortgage insurance, closing costs, and loan terms may vary. Contact a qualified lender, tax professional, or financial advisor for guidance.