Compare your current loan to a new one and find your break-even point — the month your savings pay back the closing costs.
A refinance usually has closing costs. Break-even is the month your monthly savings add up to those costs — after that, the savings are yours. If you plan to keep the home past break-even, refinancing typically makes sense.
Lowering your payment by stretching back out to 30 years can still cost more over the full life of the loan. This tool shows total interest for both loans so you can weigh the monthly savings against the long-term cost.