Mortgage Refinance Calculator
Compare your current mortgage with refinancing options to determine potential savings and break-even point
Calculate Refinance Savings
Current Mortgage
Outstanding balance on current mortgage
Annual interest rate on current loan
Months left on current mortgage
Years left on current mortgage
New Mortgage (Refinance)
Interest rate for new mortgage
Term for new mortgage
Upfront fee as % of loan amount
Closing costs, fees, appraisal, etc.
Positive = cash out (larger loan), Negative = cash in (smaller loan)
Refinance Analysis Results
| Loan Details | Current Loan | New Loan | Difference |
|---|---|---|---|
| Principal | $275,000 | $277,750 | $2,750 |
| Monthly Payment | $1856.82 | $1491.02 | $365.80 |
| Interest Rate | 6.5% | 5% | -1.50% |
| Term | 25.0 years | 30 years | 5.0 years |
| Total Interest | $282046 | $259018 | $23028 |
Break-even Analysis
Recommendation
✅ Refinancing looks beneficial! You'll save $365.80 per month and break even in 1.8 years.
Example Refinance Scenario
Current Mortgage
Balance: $300,000
Rate: 6.5%
Term: 25 years remaining
Payment: $2,108/month
Refinance Option
New Rate: 5.0%
New Term: 30 years
Points: 1% ($3,000)
Closing Costs: $5,000
Results
New Payment: $1,610/month
Monthly Savings: $498
Break-even: 16 months
Total Savings: $91,000+ over life of loan
Why Refinance?
Lower Payments
Reduce monthly payments with lower rates
Shorter Term
Pay off mortgage faster, save on interest
Cash Out
Access home equity for improvements
When to Refinance
Rates drop 1% or more below current rate
Credit score has improved significantly
Staying in home for break-even period
Switch from ARM to fixed-rate
Remove PMI with 20% equity
Refinance Tips
Shop multiple lenders for best rates
Consider all costs, not just interest rate
Time application when rates are low
Check break-even point before deciding
Understanding Mortgage Refinancing
What is Refinancing?
Mortgage refinancing means replacing your current home loan with a new one, typically with better terms such as a lower interest rate, different term length, or to access cash from your home's equity.
Types of Refinancing
- •Rate & Term: Change interest rate or loan term
- •Cash-out: Borrow more than you owe
- •Cash-in: Pay down loan balance
- •Streamline: Simplified process for existing borrowers
Break-even Analysis
Break-even = Total Costs ÷ Monthly Savings
The break-even point tells you how long it takes to recover refinancing costs through monthly payment savings. Consider your plans to stay in the home when evaluating this timeline.
Rule of Thumb: Refinancing typically makes sense if you can lower your rate by 1% or more and plan to stay in your home past the break-even point.