Mortgage Refinance Calculator
How to Use the Refinance Calculator
Simply adjust the sliders or type your numbers into the fields above. The results update instantly:
- Monthly Payment (Old vs. New): your current payment and what you’d pay after refinancing.
- Monthly Savings: how much less you’ll pay each month. A negative value means your new payment would be higher.
- Break‑Even Point: the number of months (and years) it takes to recoup closing costs with the monthly savings. If you won’t save money, break‑even is shown as “N/A”.
- Total Interest Saved: difference in total interest paid over the life of the new loan compared to finishing your current loan. A negative saving means you’d pay more interest overall (often happens when you extend the term).
What Is Refinancing?
Refinancing replaces your current mortgage with a new one, ideally at a lower interest rate or better terms. Common reasons include reducing monthly payments, shortening the loan term, switching from an adjustable‑rate to a fixed‑rate mortgage, or tapping into home equity.
Should You Refinance? The Break‑Even Rule
The break‑even point is key. If you plan to stay in your home longer than the break‑even period, refinancing usually makes financial sense. For example, if closing costs are $3,000 and you save $150/month, break‑even is 20 months (1.7 years). After that, every dollar saved is pure gain.
Important Considerations
- Total interest cost: A lower monthly payment over a longer term can cost you more in total interest. This calculator shows both monthly and total interest figures to help you decide.
- Credit score & fees: The best rates go to borrowers with excellent credit. Always compare multiple lenders and include all fees.
- Prepayment penalties: Check if your current loan charges a penalty for paying it off early.
- Life changes: If you might move soon, a no‑cost refinance or staying put could be better.
Use this tool as a starting point, then speak with a mortgage professional to evaluate your full financial picture.
