Refinance Calculator
Two questions in one tool. Rate & Term: will a lower rate actually save you money once you account for closing costs? Cash-Out: how much equity can you pull, and what does the new payment look like? Switch modes below.
Lower your rate or change your term. See the monthly savings and how long it takes to recoup closing costs.
Results
Monthly Savings
$0
Break-even = Closing Costs ÷ Monthly Savings
When Is Refinancing Worth It?
The honest answer is “when you'll own the property past the break-even point.” Forget the rule-of-thumb rate drops — the only number that matters is how long it takes the monthly savings to repay the closing costs:
Break-Even (months) = Closing Costs ÷ Monthly Savings
Worked example
You owe $240,000 with 27 years left at 7.5% — about $1,726 a month in principal and interest. Refinancing into a new 30-year loan at 6.5% drops the payment to roughly $1,517, a $209 monthly saving. On $6,000 of closing costs, you break even in about 29 months — clearly worth it if you'll hold the property for years, but watch that the new 30-year term doesn't quietly add interest over the long run.
Cash-Out Refinance vs. HELOC
A cash-out refinance replaces your first mortgage with a larger one and hands you the difference — best when you can keep a reasonable rate and want a single payment. It's the “R” in BRRRR.
A HELOC leaves your first mortgage in place and adds a revolving line on top — better when you have a low first-mortgage rate worth keeping. Compare the two on the investment property HELOC calculator.
Either way, an investment-property cash-out is capped around 70–75% LTV. Not sure which financing path fits your deal? Run the Financing Matcher.