Mortgage Refinance Calculator
See if refinancing can lower your monthly payment and save you money.
Current Loan Details
New Loan Details
Your Refinance Summary
$0.00
Potential Monthly Savings
Break-Even Point
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Lifetime Savings
$0
Is Refinancing Your Mortgage a Good Idea?
What is Mortgage Refinancing?
Mortgage refinancing is the process of replacing your existing home loan with a new one. Homeowners typically refinance to get a lower interest rate, which can reduce their monthly payment and save them a significant amount of money over the life of the loan. You can also refinance to change your loan term (e.g., from a 30-year to a 15-year mortgage) or to switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. Our Mortgage Refinance Calculator is designed to help you analyze these scenarios.
How to Use This Mortgage Refinance Calculator
Our calculator makes it simple to compare your current mortgage with a new loan offer. Here’s what you need to enter:
- Current Loan Details: Enter your original loan amount, interest rate, term, and the date you took out the loan. This allows the calculator to estimate your current remaining balance.
- New Loan Details: Enter the interest rate and term for the new loan you are considering, along with the estimated closing costs.
- The Results: The Mortgage Refinance Calculator will instantly show you your potential monthly savings, the total lifetime savings (or cost), and the crucial “break-even point”—the number of months it will take for your monthly savings to cover the closing costs.
Frequently Asked Questions
When is a good time to refinance?
A common rule of thumb is to consider refinancing if you can lower your interest rate by at least 1%. However, the decision also depends on how long you plan to stay in the home. If you plan to move before you reach the break-even point shown in our calculator, refinancing may not be worth the cost.
What are closing costs?
Closing costs are fees associated with setting up a new mortgage. They typically range from 2% to 5% of the new loan amount and can include appraisal fees, title insurance, and lender fees. It’s essential to factor these costs into your decision, which our Mortgage Refinance Calculator does automatically.
Should I refinance to a shorter loan term?
Refinancing from a 30-year to a 15-year mortgage can save you a massive amount in total interest and help you build equity much faster. However, your monthly payment will be significantly higher. Use this calculator to see if the higher payment fits within your budget.