Refinance Now vs Wait Calculator
Refinance at today's rate, hold out for a further drop, or do nothing? This engine compares the total cost of each path over the time you actually expect to keep the home — net of closing costs.
Your decision
Wait for a lower rate. Over the 84 months you expect to keep the home, the cheapest path costs about $270,800.
Recommended
GoodWait for a lower rate
Lowest total cost over your expected time in the home.
Monthly savings if you refi now
Good$331
Current payment minus the new payment at today's rate.
Break-even
Good18 mo
84 mo until you sell
Months for monthly savings to cover closing costs.
Rate drop to justify waiting
0.72%
Roughly how much rates must fall for waiting to beat refinancing now.
Ranked options
#1Wait for a lower rate
Pay your current payment for 12 months, then refinance near 5.97%.
Confidence: LowEffort: LowRisk: Medium#2Refinance now
$2,069/mo, saving $331/mo, break-even in 18 mo.
Confidence: MediumEffort: MediumRisk: Low#3Do nothing
Keep your current loan and payment unchanged.
Confidence: MediumEffort: LowRisk: Low
Watch-outs
- • 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
- 6.72%
- Closing costs
- $6,000
- Expected rate drop
- 75 bps in 12 mo
- Years until you sell
- 7
Estimates based on your assumptions above — roughly indicative, not financial, tax, or legal advice.
Why this matters
Refinancing only pays off if you stay long enough to recoup the closing costs, and waiting only pays off if rates actually fall as much as you expect. Most "should I refinance" tools ignore the wait scenario entirely. This one prices all three paths over your real time horizon.
Frequently asked questions
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.