Refinance Calculator
See if refinancing your mortgage can save you money on payments and interest.
Refinance Summary
Total Interest Comparison
| Metric | Current Loan | New Loan | Difference |
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What is a Refinance Calculator?
A refinance calculator helps homeowners determine whether replacing their current mortgage with a new loan will save money. It compares monthly payments, total interest, and the time required to recover closing costs.
Refinancing can lower your interest rate, reduce your monthly payment, or shorten your loan term. However, closing costs and fees must be considered to ensure the switch is financially beneficial.
How to Use
- Enter your current loan balance, interest rate, and monthly payment.
- Input the new interest rate you have been offered and the desired new term.
- Add estimated closing costs for the new loan.
- Click Calculate to see your savings, break-even point, and interest comparison.
Frequently Asked Questions
What is the break-even point?
The break-even point is how many months it takes for your monthly savings to equal the closing costs you paid to refinance. After this point, you begin to net savings.
Should I refinance to a shorter term?
Shorter terms usually have lower rates and less total interest, but higher monthly payments. Consider your budget and how long you plan to stay in the home.
Are closing costs included in the new loan?
This calculator assumes closing costs are paid upfront. If you roll them into the new loan, your balance and payment will be slightly higher.
Does refinancing reset my amortization?
Yes, refinancing starts a new amortization schedule. Early payments will again be mostly interest, so it is important to confirm the long-term savings justify this reset.