Refinance Calculator
Determine if refinancing your loan is worth it and calculate potential savings
Current Loan Details
Outstanding principal balance on your current loan
Annual interest rate on current loan
Time remaining on current loan
New Loan Details
Interest rate for the new loan
Term length for the new loan
Upfront fee as percentage of loan amount
Additional fees (appraisal, title, etc.)
Additional cash borrowed (cash-out refinance)
Refinance Analysis
| Metric | Current Loan | New Loan | Difference |
|---|---|---|---|
| Principal | $0 | $0 | $0 |
| Monthly Payment | $0.00 | $0.00 | -$0.00 |
| Interest Rate | 0.00% | 0.00% | 0.00% |
| Term | 0.0 years | 0.0 years | 0.0 years |
| Total Interest | $0 | $0 | $0 |
| Total Payments | $0 | $0 | $0 |
Refinancing Tips
When to Refinance
- • Interest rates drop 1-2% or more
- • Credit score has improved
- • Want to switch rate types
- • Need to change loan term
Break-even Rule
Refinance makes sense if you'll stay in the home beyond the break-even point.
Consider Costs
Factor in all closing costs, not just the interest rate difference.
Types of Refinancing
Rate & Term
Lower rate or change term length
Cash-Out
Borrow more than you owe for cash
Cash-In
Pay extra to reduce loan balance
Streamline
Simplified process with fewer requirements
Understanding Refinancing
What is Refinancing?
Refinancing is replacing your existing loan with a new loan that has different terms. The goal is typically to get a better interest rate, change the loan term, or access equity through a cash-out refinance.
Benefits of Refinancing
- •Lower monthly payments
- •Reduce total interest paid
- •Change from variable to fixed rate
- •Access home equity for cash
- •Remove mortgage insurance
When to Consider Refinancing
Interest Rates Drop
Rule of thumb: 1-2% rate reduction makes refinancing worthwhile
Credit Improved
Better credit score can qualify you for lower rates
Financial Goals Changed
Want to pay off faster or reduce monthly payments
Refinancing Costs
- Application fee:$300-$500
- Origination fee:0.5%-2% of loan
- Appraisal:$300-$600
- Title insurance:$300-$800
- Credit report:$25-$50
- Total typical costs:2%-5% of loan
Break-even Analysis
The break-even point is when your monthly savings equal the total cost of refinancing. You should plan to stay in your home beyond this point to benefit from refinancing.
Break-even Formula
Months = Total Costs ÷ Monthly Savings