Refinance Calculator
Calculate mortgage refinance savings, break-even point, and new monthly payment. Compare current vs new loan terms to determine if refinancing makes financial sense.
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Current Loan
$
%
years
New Loan
%
years
$
Typically 2-5% of loan amount
$
Optional: additional cash you want
Refinance Analysis
Monthly Savings
+$308
Break-Even Period
17 months
1.4 years
Total Savings
$87,290
Over life of loan
Payment Comparison
Current Loan
$1,228
Monthly Payment
Rate: 5.5%
Term: 25 years remaining
→
New Loan
$921
Monthly Payment
Rate: 3.5%
Term: 30 years
Cost Breakdown
New Loan Amount
$205,000
Closing Costs
$5,000
Total New Loan Cost
$336,395
Interest Comparison
Current Loan (remaining interest)$168,452
New Loan (total interest)$126,395
Interest Savings$42,058
💡 Key Considerations
- ✓ Refinancing is financially beneficial
- Break-even in 1.4 years
- New loan amount includes cash-out: $205,000
- Total interest over loan life: $126,395
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Understanding Mortgage Refinancing
Refinancing replaces your current mortgage with a new one, ideally with better terms. The key is ensuring the savings outweigh the costs.
When to Refinance
- Interest rates drop 0.5-1% or more
- Your credit score has improved significantly
- You want to switch from ARM to fixed-rate
- You need to access home equity (cash-out refi)
- You want to remove PMI (with 20%+ equity)
- You can afford higher payments for a shorter term
Types of Refinancing
- Rate-and-Term: Lower rate or change loan term
- Cash-Out: Borrow more than you owe, take difference as cash
- Cash-In: Pay down principal to get better rate
- Streamline: Simplified process for FHA/VA loans
Closing Costs Include
- Appraisal fee ($300-$500)
- Origination fee (0.5-1% of loan)
- Title insurance ($500-$1,000)
- Credit report fee ($25-$50)
- Recording fees (varies by county)
Frequently Asked Questions
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