Home Loan Refinance Calculator
Compare your current mortgage with a new refinance loan and estimate payment savings, interest savings, closing costs and break-even time.
Current Mortgage
New Refinance Loan
New Monthly Housing Costs
Your Refinance Results
Refinance Savings Summary
| Item | Current Loan | Refinanced Loan |
|---|---|---|
| Loan Balance | $0 | $0 |
| Interest Rate | 0% | 0% |
| Remaining / New Term | 0 years | 0 years |
| Monthly P&I | $0 | $0 |
| Total Interest | $0 | $0 |
Total Monthly Housing Payment
Refinance Break-Even Analysis
Cash-Out Refinance Summary
Cash-out refinancing increases the amount borrowed. The additional borrowing can increase the monthly payment and total interest cost.
Extra Mortgage Payment Comparison
Annual Refinance Amortization Schedule
| Year | Starting Balance | Principal Paid | Interest Paid | Ending Balance |
|---|
First 12 Monthly Payments
| Month | Payment | Principal | Interest | Remaining Balance |
|---|
Copyable Refinance Results
Home Loan Refinance Calculator
A home loan refinance calculator helps homeowners compare their existing mortgage with a potential new mortgage. This calculator estimates the new principal-and-interest payment, monthly payment savings, total interest, refinance costs, break-even time and cash-out loan amount.
How to Use This Refinance Calculator
- Enter your current mortgage balance.
- Enter your current interest rate.
- Enter the number of years remaining.
- Enter the proposed refinance rate.
- Select the new loan term.
- Enter estimated refinance closing costs.
- Add a cash-out amount if applicable.
- Choose whether closing costs will be financed.
- Enter taxes, insurance, HOA and mortgage insurance.
- Click Calculate Refinance.
What Is Mortgage Refinancing?
Mortgage refinancing replaces an existing home loan with a new mortgage. The new loan is generally used to pay off the existing mortgage, and the homeowner then makes payments under the new loan terms.
Homeowners may refinance to obtain a lower interest rate, reduce monthly payments, change the loan term, access home equity or modify their mortgage structure.
What Is the Refinance Break-Even Point?
The refinance break-even point estimates how long it takes for monthly savings to recover the costs of refinancing. For example, if refinancing costs $6,000 and your monthly principal-and-interest savings are $300, the simple break-even point is approximately 20 months.
The calculation is only an estimate. Your actual financial outcome can differ because of loan balances, taxes, insurance, fees, changing rates and the amount of time you keep the new mortgage.
How Much Can You Save by Refinancing?
Potential savings depend on your current balance, existing interest rate, new interest rate, remaining term, new loan term and refinance costs.
A lower interest rate does not automatically make refinancing worthwhile. A new loan can have significant closing costs or restart the repayment period, potentially increasing total interest despite a lower monthly payment.
15-Year vs 30-Year Refinance
A 15-year refinance usually produces a higher required monthly payment than a 30-year refinance, but the mortgage may be paid off sooner and can result in substantially less interest over the life of the loan.
A 30-year refinance may provide a lower required payment but can extend the repayment period. Compare both the monthly payment and total interest before choosing a term.
What Are Refinance Closing Costs?
Refinancing can involve lender charges, appraisal fees, title services, recording charges and other transaction costs. Your actual costs depend on your lender, property and location.
Enter your estimated closing costs into the calculator to see how they affect your break-even period.
What Is a Cash-Out Refinance?
A cash-out refinance replaces an existing mortgage with a larger loan and allows an eligible borrower to access part of the available home equity as cash.
Because cash-out refinancing increases the amount borrowed, it can increase both monthly payments and total interest.
Can Refinancing Lower Your Monthly Payment?
It can. A lower interest rate, longer repayment period or lower loan balance can reduce the required principal-and-interest payment. However, a lower monthly payment does not necessarily mean that the refinance costs less overall.
How Extra Mortgage Payments Help
Additional principal payments can reduce your mortgage balance faster. A smaller balance generally means less interest can accumulate over the remaining repayment period.
Use the extra-payment feature to compare your standard refinance schedule with an accelerated payoff scenario.
When Might Refinancing Make Sense?
- Your new interest rate is meaningfully lower.
- You expect to keep the property long enough to recover refinancing costs.
- You want to change the loan term.
- You want to improve monthly cash flow.
- You want to access home equity.
- The new loan provides a better overall financial structure.
When Might Refinancing Not Make Sense?
- Closing costs are high.
- You expect to move soon.
- The new loan significantly extends the repayment period.
- The interest-rate reduction is small.
- Cash-out borrowing creates an unnecessarily large balance.
- The expected savings do not justify the transaction costs.
Frequently Asked Questions
It may be worthwhile when the long-term financial benefit exceeds the cost of refinancing. Compare payment savings, closing costs, break-even time and total interest.
The potential reduction depends on your existing balance, current rate, new rate, remaining term and new loan term.
It is the estimated number of months required for monthly savings to recover the costs of refinancing.
A refinance creates a new loan with a new repayment schedule. Refinancing into a new 30-year loan can therefore extend the overall repayment period.
Yes, depending on lender requirements and your financial circumstances. A shorter loan term can reduce total interest while increasing the monthly payment.
Eligible borrowers may be able to use a cash-out refinance to access home equity. Requirements and limits vary according to the lender and loan program.
No. A lower rate can reduce interest, but closing costs, a longer term or cash-out borrowing can reduce or eliminate the expected savings.
Some lenders offer refinance structures advertised with little or no upfront closing costs, but expenses may be reflected in the interest rate or loan balance. Compare the complete loan terms.