Refinance Calculator 2026
Analyze mortgage refinance options to find your break-even point and total savings. Optimize your loan strategy with our precision 2026 Refinance Calculator.
US Federal Tax Tables (2025 vs 2026): quick reference
When you refinance, your monthly housing payment changes — but your after-tax income matters too. These tables are a quick reference for US federal parameters. For a full estimate, use our Income Tax Calculator and explore US tax tools.
Standard deduction (2025 vs 2026)
| Filing status | 2025 | 2026 |
|---|---|---|
| Single | $15,000 | $16,100 |
| Married Filing Jointly | $30,000 | $32,200 |
| Head of Household | $22,500 | $24,150 |
| Married Filing Separately | $15,000 | $16,100 |
Ordinary income bracket tops (quick snapshot)
| Year | Status | 10% top | 12% top | 22% top | 24% top | 32% top | 35% top | 37% starts |
|---|---|---|---|---|---|---|---|---|
| 2025 | Single | $11,925 | $48,475 | $103,350 | $197,300 | $250,525 | $626,350 | $626,351+ |
| 2026 | Single | $12,400 | $50,400 | $105,700 | $201,775 | $256,225 | $640,600 | $640,601+ |
| 2025 | MFJ | $23,850 | $96,950 | $206,700 | $394,600 | $501,050 | $751,600 | $751,601+ |
| 2026 | MFJ | $24,800 | $100,800 | $211,400 | $403,550 | $512,450 | $768,700 | $768,701+ |
| 2025 | HOH | $17,000 | $64,850 | $103,350 | $197,300 | $250,500 | $626,350 | $626,351+ |
| 2026 | HOH | $17,700 | $67,450 | $105,700 | $201,775 | $256,200 | $640,600 | $640,601+ |
When Should You Refinance?
Refinancing is typically beneficial when you can secure a lower interest rate, shorten your loan term, or convert an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. A common rule of thumb is that refinancing makes sense if you can lower your rate by at least 1% or if you plan to stay in the home long enough to reach the break-even point.
Understanding Closing Costs
Refinancing isn't free. Closing costs can range from 2% to 6% of your loan amount. These may include application fees, origination fees, appraisal fees, and title insurance. Our calculator subtracts these costs from your gross savings to show your true net benefit.
Frequently Asked Questions
Q:What is a good break-even point for refinancing?
A break-even point of 30 months (2.5 years) or less is generally considered excellent. A period between 30 and 48 months is often acceptable if you plan to stay in the home for significantly longer than that. If the break-even point exceeds 5-7 years, refinancing may be risky if your plans change.
Q:Does refinancing hurt my credit score?
Initially, yes. Applying for a refinance triggers a hard inquiry, which may drop your score by a few points. However, ensuring consistent on-time payments on your new loan will help improve your credit score over time.
Q:Can I refinance with bad credit?
It is more difficult but possible. You may not qualify for the lowest advertised rates. Lenders often require a credit score of at least 620 for conventional loans, though FHA loans may accept lower scores. Improving your score before applying can significantly increase your potential savings.
Q:What is a cash-out refinance?
A cash-out refinance allows you to borrow more than you owe on your home and take the difference in cash. This is often used for home improvements or debt consolidation. Keep in mind this increases your total loan amount and may result in a higher interest rate compared to a rate-and-term refinance.
Vercalc Expert Team
Financial Analysis Specialists
The Vercalc Expert Team consists of seasoned financial analysts and data architects dedicated to providing precise, transparent, and user-centric financial tools. Our methodologies are rigorously tested against industry standards to ensure every calculation guides you towards smarter financial decisions.