Mortgage Refinance Calculator

Find out if refinancing your mortgage is worth it. Compare your current loan to new refinancing options, calculate monthly savings, and determine how long it will take to break even on closing costs.

Mortgage Refinance Calculator

Determine if refinancing your mortgage makes financial sense by calculating potential savings, break-even points, and total costs.

Current Mortgage

Current Loan Balance

Current Interest Rate

Original Loan Term

years

Remaining Term

years

New Mortgage

New Interest Rate

New Loan Term

years

Closing Costs

Closing Costs Percentage

Additional Closing Costs

Refinance Analysis

Results update automatically as you change your inputs

When to Refinance

Interest Rate Savings

The traditional rule of thumb is to refinance when rates are at least 1% lower than your current rate, but even a 0.5% reduction can be worthwhile for larger or newer loans.

Break-Even Point

Consider how long you plan to stay in your home compared to your break-even point. If you'll move before reaching this point, refinancing may not be worthwhile.

Loan Term Considerations

Refinancing to a shorter term (e.g., from 30 to 15 years) might increase your monthly payment but save substantial interest over the loan's life.

Closing Costs

Typical refinance closing costs range from 2-5% of the loan amount. Some lenders offer "no-closing-cost" refinances, but these typically have higher interest rates.

Beyond Rate Reduction

Other valid reasons to refinance include switching from an adjustable to a fixed rate, removing mortgage insurance, or tapping home equity through a cash-out refinance.

How to Use This Calculator

This calculator helps you make informed financial decisions by providing accurate estimates based on the information you provide. Follow these steps:

Enter Your Details

Fill in all required fields with your financial information.

Adjust Parameters

Use sliders and toggles to customize scenarios and assumptions.

View Results

Get instant calculations that update as you change inputs.

Compare Options

Try different scenarios to find the best financial solution.

When to Consider Refinancing

Refinancing can be a smart financial move in certain situations, but it's important to weigh the costs and benefits carefully. Here are some scenarios when refinancing might make sense:

Lower Interest Rates

If market rates have dropped significantly below your current rate (typically at least 0.5-1% lower), refinancing can lead to substantial interest savings over the life of your loan.

Better Credit Score

If your credit score has improved significantly since you took out your original mortgage, you may now qualify for a better interest rate, even if market rates haven't changed much.

Changing Loan Terms

You might want to switch from a 30-year to a 15-year mortgage to pay off your home faster, or from an adjustable-rate to a fixed-rate mortgage for more payment stability.

Tapping Home Equity

A cash-out refinance lets you borrow against your home's equity, which can be useful for home improvements, debt consolidation, or other major expenses.

Understanding the Breakeven Point

The breakeven point is when your savings from refinancing equal the costs of refinancing. To find this point, divide your total closing costs by your monthly savings.

For example, if refinancing costs $3,000 and saves you $100 per month, your breakeven point is 30 months (3,000 ÷ 100 = 30). In general, refinancing makes financial sense if you plan to stay in your home beyond the breakeven point.

Refinancing Tip

While a lower monthly payment is appealing, focus on the total cost over the life of the loan. Refinancing to a longer term may lower your payments but could cost more in total interest.