Should I refinance my mortgage?
A lower rate is only one input. Compare costs, break-even time and the new loan clock before deciding.
Compare the loan you have with the offer
Collect the current balance, rate, remaining term and monthly principal-and-interest payment. For the refinance, collect the new rate, term, closing costs and whether those costs are paid in cash or added to the balance.
Also note changes to mortgage insurance, taxes or fees. They can change the monthly result even when the rate comparison looks simple.
Break-even needs a time horizon
A simple refinance break-even divides upfront closing costs by monthly savings. If closing costs are $4,800 and the payment falls by $200, the simple break-even is 24 months.
What the simple formula misses
Restarting a 30-year term can lower the payment partly by spreading the balance across more years. Compare total interest and the balance at the date you expect to sell, move or refinance again.
Run the refinance comparison in Bricks
- Open the Refinance Calculator from New.
- Enter the current loan balance, rate and remaining term.
- Enter the proposed rate, term and refinance costs.
- Review monthly savings, estimated break-even and cost differences.
- Save the scenario and duplicate it for a second offer.
Read the result against your plans
If you expect to keep the loan beyond break-even, continue to the total-cost comparison. If you expect to move sooner, upfront costs may not be recovered. Also consider cash reserves, loan features and the risk that the timeline changes.
Refinance calculations are estimates. Confirm fees, taxes, escrow treatment and loan terms with the lender.
Compare the old and new loan
Keep both scenarios visible before you commit to new costs and a new term.
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