Mortgage Calculators
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How to use this calculator
This calculator estimates your potential monthly savings from refinancing your current mortgage into a new loan. Enter your current loan details (remaining balance, interest rate, and original loan term) along with the terms of the new loan you're considering. If you plan to take cash out, include that amount as well.
Use the results to compare your current and new monthly payments, estimate long-term savings, and get a rough sense of how quickly a refinance might pay for itself. This tool is for planning purposes, not a final quote.
Get a more accurate refinance quote
Refinance savings depend on factors this calculator can't fully account for. Your credit profile, the loan program you qualify for, current market rates, and closing costs all play a role.
We're happy to run the real numbers for you, compare loan options side by side, and help you decide if refinancing makes sense right now. There's no obligation, and it only takes a few minutes.
What affects your refinance savings?
Your monthly savings from refinancing depend on several variables:
- •Interest Rate Difference - Even a small rate reduction can meaningfully lower your payment over time
- •Remaining Loan Balance - A higher balance amplifies both savings and costs
- •New Loan Term - A shorter term builds equity faster but may increase your monthly payment
- •Cash-Out Amount - Taking cash out increases your new loan balance and affects your savings
- •Closing Costs - Typically 2–5% of the loan amount; your break-even timeline accounts for these
- •Time Remaining on Current Loan - The more time left, the more interest you could potentially save, which makes earlier refinances more viable than later ones
Is now a good time to refinance?
Rate alone doesn't answer that question. What matters is your break-even point: how long it takes your monthly savings to recover what the refinance costs at closing. If you'll stay in the home past that point, the timing is probably right. Your current equity position and the loan term you choose factor in too. A Thompson Kane loan officer can help you evaluate whether the timing is right for you specifically.
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Disclaimer ~ How to Read the Results
The figures generated by this calculator are for informational and planning purposes only. They do not represent a loan offer, pre-approval, commitment to lend, or guarantee of specific loan terms, costs, or savings. Actual refinance results, including your interest rate, monthly payment, closing costs, break-even timeline, and total interest paid, will depend on your credit history, income, assets, debt obligations, property type and value, loan program, and prevailing market conditions at the time of application.
The break-even estimate uses the closing-cost percentage you enter in the calculator. The 2.5% shown in that field is a suggested starting point, not a pre-filled value: if you leave the field blank, your estimate will not include any closing costs at all. Actual closing costs typically range from 2–5% of the loan amount and vary based on lender fees, third-party services, prepaid items, and location. Your loan officer can tell you what to expect for your specific loan. Mortgage insurance, property taxes, and homeowners insurance are not reflected in these estimates and may affect your total monthly housing cost.
Thompson Kane & Company is a licensed direct mortgage banker. All loans are subject to credit approval and standard underwriting guidelines. Rates, programs, and terms are subject to change without notice and may not be available in all areas.
For a personalized refinance analysis based on your actual loan profile, connect with a Thompson Kane loan officer.
Frequently asked questions
How accurate is this refinance calculator?
Accurate enough to tell you whether refinancing is worth a closer look, but it's still an estimate. Your actual savings will depend on the rate you qualify for, your remaining loan balance, your credit profile, and the closing costs specific to your situation. Use it to test the math, then talk to a Thompson Kane loan officer to find out what's actually on the table for you.
When does it make sense to refinance?
The old rule of thumb, "Only refinance if you can drop your rate by 1% or more", is too blunt to be useful. What actually matters is your break-even point: how long it takes for your monthly savings to recover the cost of refinancing. If you plan to stay in the home past that point, refinancing likely makes sense. If you're moving in two years, it probably doesn't, even at a meaningfully lower rate.
What is a break-even point and why does it matter?
Your break-even point is the month when your cumulative monthly savings finally exceed what the refinance cost you at closing. Before that point, you're still in the red. After it, every month is money back in your pocket. It's the single most important number in the decision, and it should drive both whether you refinance and when.
How much does refinancing cost?
Refinancing isn't free. Closing costs typically run between 2% and 5% of the loan amount. Those costs can be paid upfront, rolled into the new loan, or sometimes offset through a slightly higher rate. Each approach has tradeoffs. Rolling costs into the loan keeps cash in your pocket today but increases what you owe. A Thompson Kane loan officer can lay out the options side by side so you can see what each one actually costs you over time.
Will refinancing extend my loan term?
It can. That's worth paying attention to. If you've been paying on a 30-year mortgage for seven years and you refinance into a new 30-year loan, you're resetting the clock. Your payment may go down, but your payoff date moves out and your total interest paid could actually increase. Refinancing into a shorter term, say, from a 30-year into a 15-year, avoids that problem and often comes with a lower rate, though your monthly payment will be higher.
What's the difference between a rate-and-term refinance and a cash-out refinance?
A rate-and-term refinance replaces your existing loan with a new one at a better rate, a different term, or both. The goal is a lower payment or faster payoff. A cash-out refinance lets you borrow against your home equity, replacing your mortgage with a larger loan and taking the difference in cash. Both are legitimate tools, but they serve different goals. If you're carrying high-interest debt or facing a large expense, cash-out can make sense, but it increases what you owe on your home, so it deserves careful thought.
How does my credit score affect my refinance rate?
Significantly. Even a 20- or 30-point difference in credit score can move your rate enough to change whether refinancing makes financial sense. If your score has improved since you took out your original loan, that alone can be a compelling reason to explore a refinance. If it's dropped, it may be worth waiting or taking steps to improve it before applying.
Frequently asked questions
How accurate is this refinance calculator?
Accurate enough to tell you whether refinancing is worth a closer look, but it's still an estimate. Your actual savings will depend on the rate you qualify for, your remaining loan balance, your credit profile, and the closing costs specific to your situation. Use it to test the math, then talk to a Thompson Kane loan officer to find out what's actually on the table for you.
When does it make sense to refinance?
The old rule of thumb, "Only refinance if you can drop your rate by 1% or more", is too blunt to be useful. What actually matters is your break-even point: how long it takes for your monthly savings to recover the cost of refinancing. If you plan to stay in the home past that point, refinancing likely makes sense. If you're moving in two years, it probably doesn't, even at a meaningfully lower rate.
What is a break-even point and why does it matter?
Your break-even point is the month when your cumulative monthly savings finally exceed what the refinance cost you at closing. Before that point, you're still in the red. After it, every month is money back in your pocket. It's the single most important number in the decision, and it should drive both whether you refinance and when.
How much does refinancing cost?
Refinancing isn't free. Closing costs typically run between 2% and 5% of the loan amount. Those costs can be paid upfront, rolled into the new loan, or sometimes offset through a slightly higher rate. Each approach has tradeoffs. Rolling costs into the loan keeps cash in your pocket today but increases what you owe. A Thompson Kane loan officer can lay out the options side by side so you can see what each one actually costs you over time.
Will refinancing extend my loan term?
It can. That's worth paying attention to. If you've been paying on a 30-year mortgage for seven years and you refinance into a new 30-year loan, you're resetting the clock. Your payment may go down, but your payoff date moves out and your total interest paid could actually increase. Refinancing into a shorter term, say, from a 30-year into a 15-year, avoids that problem and often comes with a lower rate, though your monthly payment will be higher.
What's the difference between a rate-and-term refinance and a cash-out refinance?
A rate-and-term refinance replaces your existing loan with a new one at a better rate, a different term, or both. The goal is a lower payment or faster payoff. A cash-out refinance lets you borrow against your home equity, replacing your mortgage with a larger loan and taking the difference in cash. Both are legitimate tools, but they serve different goals. If you're carrying high-interest debt or facing a large expense, cash-out can make sense, but it increases what you owe on your home, so it deserves careful thought.
How does my credit score affect my refinance rate?
Significantly. Even a 20- or 30-point difference in credit score can move your rate enough to change whether refinancing makes financial sense. If your score has improved since you took out your original loan, that alone can be a compelling reason to explore a refinance. If it's dropped, it may be worth waiting or taking steps to improve it before applying.
Ready to start your journey to home ownership?
©2026 Thompson Kane & Co., Inc. | NMLS# 898428
8040 Excelsior Dr, Suite 100, Madison, WI 53717
Ready to start your journey to home ownership?
©2026 Thompson Kane & Co., Inc. • NMLS# 898428
8040 EXCELSIOR DR, Suite 100, Madison, WI 53717
Ready to start your journey to home ownership?
©2026 Thompson Kane & Co., Inc
NMLS# 898428
8040 Excelsior Dr, Suite 100
Madison, WI 53717