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Refinance Now vs Wait Calculator

Compare refinancing now, a hypothetical lower-rate refinance after waiting, and keeping the current loan. The model compares interest plus entered transaction costs over your hold period and shows each path's ending balance.

Quick answer: Compare keep, refinance-now, and user-entered wait scenarios using interest, transaction costs, ending balances, and a fixed hold period. Enter Current loan balance, Current rate, Current monthly payment (P&I), and Months remaining to personalize the estimate. It returns Lowest modeled cost, Monthly savings if you refi now, and Break-even so you can compare the impact before choosing a next step. Use it to compare payment, equity, rate, and timing tradeoffs before applying or changing a loan.

SWReviewed by SwitchWize Research Desk · Last reviewed July 18, 2026
Current option
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Alternatives
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Assumptions

Your decision

Wait for a lower rate. Over the 84 months you expect to keep the home, the lowest modeled financing cost (interest plus refinance costs) is about $137,081.

Recommended: Wait for a lower rate

Lowest modeled cost

Good

Wait for a lower rate

Lowest interest plus transaction cost over the entered hold period; not a rate forecast or lending recommendation.

Monthly savings if you refi now

Good

$318

Current payment minus the new payment at today's rate.

Break-even

Good

19 mo

84 mo until you sell

Months for monthly savings to cover closing costs.

Rate drop to justify waiting

0.00%

Roughly how much rates must fall for waiting to beat refinancing now.

Ranked options

  1. #1Wait for a lower rate

    Pay your current payment for 12 months, then refinance near 6.03%.

    Confidence: LowEffort: LowRisk: Medium

  2. #2Do nothing

    Keep your current loan and payment unchanged.

    Confidence: MediumEffort: LowRisk: Low

  3. #3Refinance now

    $2,082/mo, saving $318/mo, break-even in 19 mo.

    Confidence: MediumEffort: MediumRisk: Low

Watch-outs

  • • Today's new rate (6.78%) is less than 0.25 percentage points below your current 7.00%. That is a screening flag, not a decision rule; fees, balance, term, and hold period determine the modeled result.
  • • Waiting assumes rates actually fall as you expect. They may not. Treat the "wait" scenario as a bet, not a certainty.

Assumptions used

Current rate / payment
7.00% · $2,400/mo
New rate now
6.78%
Closing costs
$6,000
Expected rate drop
75 bps in 12 mo
Years until you sell
7
Ending balance: keep current
$262,401
Ending balance: refinance now
$290,660
Ending balance: wait scenario
$286,562

Estimates use the amounts and assumptions you enter. Confirm the rules and your circumstances before acting.

Where this rate sits

Today's rate of 6.78% is at the 71th percentile of its ~5 years range (2.98%–7.79%). That's roughly in the middle of its own recent range.

FRED series (mortgage30y). Historical data, not a forecast.

Next steps

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Why this matters

A lower payment can come from restarting a longer term rather than reducing financing cost. This tool therefore keeps payment break-even separate from its hold-period comparison and includes the remaining balance for each path. The wait case is a user-entered scenario, not a rate forecast.

Frequently asked questions

When does refinancing now beat waiting?
In this model, refinancing now wins when its interest plus entered closing costs over the hold period is lower than both the current-loan path and the user-entered wait scenario. Actual future rates are unknown.
How is the payment break-even calculated?
Closing costs divided by monthly payment reduction. This is a cash-flow metric only. A longer replacement term may lower the payment while leaving a larger balance, so the ranked comparison also models interest and ending balances.
Should I wait for rates to drop more?
The calculator cannot predict rates. Waiting keeps the current loan for the entered number of months, then applies the rate drop you supplied. Use multiple scenarios and compare actual Loan Estimates before acting.
Does this account for selling the home?
It stops each scenario at the entered hold period and shows the remaining balance. Selling costs, taxes, escrow, prepayment penalties, points not included in closing costs, and changes in property value are outside the model.
What rate should I enter?
Use the note interest rate, not APR, for payment and amortization. Put lender fees, points, and other refinance costs in the closing-cost input, using comparable official Loan Estimates.

This tool produces estimates based on the assumptions you enter. It is not financial, tax, or legal advice. Actual rates, fees, and outcomes depend on your lender, account terms, and approval.