Refinance Calculator
Determine if refinancing your mortgage makes financial sense. Compare your current mortgage with a potential new loan and see the break-even point.
Recommendation
Fill out the form to see results
Monthly Payment Comparison
Break-Even Analysis
Long-Term Savings
Savings Over Time
Enter details and click "Calculate" to view savings over time
Understanding Mortgage Refinancing
Refinancing your mortgage can save you money and lower your monthly payments, but it's important to understand the costs and benefits before making the decision.
When to Consider Refinancing
- Lower Interest Rates: If current rates are 0.5-1% lower than your current rate
- Rate-and-Term Refinance: To lower monthly payments or pay off loan faster
- Cash-Out Refinance: To access home equity for major expenses
- Shorten Loan Term: Convert to a shorter term to save on interest
- Remove PMI: If home value has increased significantly
Refinancing Costs to Consider
- Closing Costs: Typically 2-5% of loan amount (appraisal, title, origination fees)
- Points: Prepaid interest that can lower your rate
- Title Insurance: Protects against title defects
- Appraisal Fee: Required to determine home value
- Time and Hassle: The refinancing process takes 30-60 days
Break-Even Analysis
The break-even point is when your monthly savings equal the total closing costs. If you plan to stay in your home longer than the break-even period, refinancing typically makes financial sense.
Important: This calculator provides estimates only. Actual refinancing costs and savings depend on your credit score, home value, and lender terms. Consult with a mortgage professional for personalized advice.