Refinance Calculator
Compare your current mortgage with refinancing options
Current Loan
New Loan
You'll save $462 per month and recoup closing costs in 13 months. Total lifetime savings: $13,403.
How the Refinance Calculator Works
Refinancing is a powerful tool to lower your rate or get cash out, but the costs must justify the savings.
Calculating the Break-Even Point
Refinancing isn't free; it usually costs 2-5% of the loan amount in closing fees. The 'break-even' point is when your monthly savings finally cover these costs.
- Formula: Closing Costs ÷ Monthly Savings = Months to Break-Even.
- If you plan to sell the home before reaching this point, refinancing may lose you money.
- Consider 'no-closing-cost' options, which roll the fees into a slightly higher interest rate.
Remaining Balance Formula
We calculate your current remaining balance based on your original loan amount, interest rate, and how many payments you've already made.
- Amortization means you pay more interest at the start of a loan.
- The calculator uses standard math to estimate what you still owe the bank today.
- Checking your actual monthly statement will give you the most accurate 'payoff amount'.
Lifetime Savings vs. Monthly Savings
A lower monthly payment is great, but extending your loan term (e.g., from 20 years back to 30) might mean you pay more in total interest over time.
- Monthly Savings: How much extra cash you have in your pocket each month.
- Lifetime Savings: The total cost of the old loan vs. the total cost of the new loan plus fees.
- Cash-Out Refi: Borrowing more than you owe to get cash for home improvements or debt consolidation.