Mortgage Refinance Calculator
Compare your current mortgage to refinancing options and see if it makes financial sense.
Current Mortgage
Calculated from your inputs
New Mortgage (Refinance)
Typically 2-5% of loan amount
Enter your mortgage details and click Compare
to see if refinancing makes sense
Our Recommendation
Based on your inputs
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Monthly Payment
Current vs Refinanced
Break-Even Point
When you'll recoup closing costs
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Side-by-Side Comparison
| Current | Refinance | Difference | |
|---|---|---|---|
| Monthly Payment | -- | -- | -- |
| Total Interest | -- | -- | -- |
| Total Cost | -- | -- | -- |
| Payoff Date | -- | -- | -- |
Break-Even Analysis
Mortgage Refinancing
Refinancing replaces your current mortgage with a new one, typically to get a lower interest rate, reduce monthly payments, or change your loan term. The key is ensuring the savings outweigh the closing costs.
How to Use
- 1 Enter your current mortgage balance and interest rate.
- 2 Enter how many years remain on your current loan.
- 3 Enter the new rate and term you're considering.
- 4 Add estimated closing costs (typically 2-5% of loan).
FAQ
When should I refinance?
Consider refinancing when rates drop 0.75-1% below your current rate, you plan to stay in your home long enough to recoup closing costs, or you want to switch from an adjustable to fixed rate.
What is break-even point?
The break-even point is when your monthly savings equal the closing costs you paid. After this point, you're saving money. If you move before break-even, refinancing costs you money.
What are typical closing costs?
Closing costs typically range from 2-5% of the loan amount. They include appraisal fees, title insurance, origination fees, and other charges. Some lenders offer "no-cost" refinancing with a higher rate.
Should I extend my loan term?
Extending your term lowers monthly payments but increases total interest paid. If possible, choose a shorter term to save on interest. Only extend if you need the cash flow relief.
What about cash-out refinancing?
Cash-out refinancing lets you borrow more than you owe and pocket the difference. This calculator focuses on rate-and-term refinancing. For cash-out, add the cash amount to your balance.
Calculator Limitations
This calculator assumes fixed-rate loans and rolls closing costs into the new loan. It doesn't account for PMI, taxes, insurance, or prepayment penalties. Always get quotes from multiple lenders.
