Refinancing trades an upfront cost for a lower monthly payment. This finds the exact month those savings catch up with what you paid to get there.
This mortgage refinance break-even calculator answers the question a generic refinance calculator usually skips: given your specific closing costs and new rate, exactly how many months of lower payments does it take before refinancing has actually paid for itself? Enter your current payment and balance alongside the new rate, term, and closing costs, and it works out the break-even point plus your net savings at 1, 3, 5, and 10 years — so you can weigh the upfront cost against how long you actually plan to stay in the home.
Your new payment isn’t lower than what you pay now — refinancing at these terms wouldn’t save you money monthly. New payment would be $1,867/mo.