How is the California refinance break-even calculated?

It divides your closing costs by your monthly payment savings. With a $250,000 balance dropping from 6.5% to 5.0% over 30 years, you save about $238 a month, so $4,000 in costs breaks even in about 17 months.

What does lifetime savings mean here?

Lifetime savings is your monthly savings multiplied by every month of the new term, minus closing costs. In the example that is about $81,722 over a fresh 30-year term.

Should I refinance if I plan to move soon?

Generally no if you will sell before the break-even month. In the worked example you need to keep the California loan at least 17 months just to recover the $4,000 in costs.

Does a longer new term really save money?

It lowers the monthly payment, but resetting to a fresh 30 years can raise total interest paid even at a lower rate. Compare lifetime savings, not just the monthly drop.

Does this calculator store my data?

No. Every figure is computed locally in your browser and nothing is uploaded, so your details stay private.

California Mortgage Refinance Calculator

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This California mortgage refinance calculator tells you whether refinancing is worth it by finding your break-even month and lifetime savings — comparing your current loan against a new rate and term, net of closing costs.

How it works

The tool computes the monthly principal-and-interest payment for both loans with the standard amortization formula:

M = P * r * (1 + r)^n / ((1 + r)^n - 1)

where P is the balance, r is the monthly rate (annual / 12), and n is the number of months. Then:

Monthly savings = current payment − new payment
Break-even months = closing costs ÷ monthly savings
Lifetime savings = monthly savings × new-term months − closing costs

If the new rate and term do not lower your payment, there is no break-even and the tool says so.

Example

A $250,000 California balance currently at 6.5% over 30 years has a payment of about $1,580/month. Refinancing to 5.0% over a fresh 30 years drops the payment to about $1,342/month — a saving of roughly $238/month.

With $4,000 in closing costs, you break even in about 17 months (1 year 5 months). Held for the full new term, that is roughly $81,722 in lifetime savings.

Notes

This is an estimate only and not financial advice. It compares principal and interest only — property taxes, homeowner’s insurance, mortgage insurance, and discount points are excluded. Resetting to a new 30-year term can increase total interest even at a lower rate, so weigh lifetime savings against the monthly drop. Confirm your actual closing costs and rate with your lender.