Refinance Calculator: Should You Refinance Your Mortgage?
Use this interactive refinance calculator to compare your current mortgage payment against a new loan. Enter your balance, rate, and estimated closing costs to see your monthly savings and how many months it takes to break even.
Interactive Refinance Breakeven Calculator
Your Current Loan
New Loan
- Access to 50+ wholesale lenders for rate and term comparisons
- Same-day pre-approval review available for qualified borrowers
- Halal partnership financing options for eligible clients
- Non-QM and bank statement programs for self-employed borrowers
- Speak directly with a licensed advisor at 972-466-2551
Should I Refinance My Mortgage Now?
Deciding whether to refinance depends on more than just the interest rate. Texas homeowners should review these factors:
- Rate difference: A general guideline is that a 0.5% to 0.75% rate reduction may justify refinancing, but the breakeven timeline matters more than the rate alone.
- Closing costs: Divide your total closing costs by monthly savings to find your breakeven point. If you plan to sell before that point, refinancing may not make sense.
- Loan term: Restarting a 30-year loan adds months or years to your payoff. Consider a 20-year or 15-year term if you can handle the higher payment.
- Equity position: Texas cash-out refinance rules under Section 50(a)(6) limit cash-out to 80% of home value. Rate-and-term refinances may allow higher LTVs.
- Credit changes: If your credit score has improved since your original loan, you may qualify for better pricing now.
Rate-and-Term vs. Cash-Out Refinance
Texas-Specific Refinance Considerations
Texas has unique home equity rules. Cash-out refinances are limited to 80% loan-to-value under the Texas Constitution. Once you complete a Texas cash-out, you must wait one year before doing another cash-out on the same property. Rate-and-term refinances do not have this restriction. Borrowers should also consider property tax implications, as a higher appraised value may increase future tax bills.
Purchase and refinance options for primary residences across Texas.
Local expertise in Collin, Dallas, Denton, and Tarrant counties.
DSCR and business purpose loans available in confirmed states only.
According to Mortgage Bankers Association data, refinance applications increased approximately 12% in August 2026 as rates moved lower from mid-year peaks.
A Plano homeowner refinanced from 7.25% to 6.5% on a $340,000 balance. Monthly savings of $156 recovered $4,200 in closing costs in 27 months.
A Dallas homeowner used a rate-and-term refinance to drop from 7.75% to 6.875% while avoiding cash-out restrictions. They saved $198 per month without tapping equity.
Common Questions
Borrowers may review refinance options when rates drop, their credit improves, or they want to change loan terms. Subject to qualification and market conditions.
Closing costs typically range from 2% to 5% of the loan amount. These include lender fees, title insurance, appraisal, and recording fees.
FHA streamline and Non-QM programs may be available for borrowers with lower credit scores. Subject to program requirements.
Cash-out refinancing replaces your current loan with a larger one and pays you the difference. Review whether this fits your financial goals.
Yes, unless you choose a shorter term. A new 30-year loan starts the clock over, which may increase total interest even with a lower rate.
Most borrowers benefit from refinancing if they plan to stay in the home long enough to recover closing costs through monthly savings.
Ready to explore refinancing? Call 972-466-2551 or Apply Online to review available options.
Written by Aslam Mansoor, Senior Mortgage Advisor | NMLS 184238 | 15 years guiding Texas families through home loans. Verify NMLS | Meet Our Team