Mortgage Refinance Calculator
Estimate your refinance savings and payments
Assumes $15,230 closing costs ($5,780 for 1.83 discount points paid up front to lower your rate)
| Metric / Output Field | Value / Calculation |
|---|---|
| Current Loan Details | |
| Current Monthly Payment (P&I) | - |
| Remaining Term | - |
| Current LTV | - |
| Calculated LTV Tier | - |
| Refinance Loan Details | |
| Selected New Rate | - |
| Base Closing Costs | - |
| Discount Points | - |
| Points Cost | - |
| Total Closing Costs | - |
| Savings & Comparison | |
| Monthly Savings (P&I) | - |
| Annual Payment Savings | - |
| Current Remaining Payments | - |
| New Total Payments | - |
| Current Remaining Interest | - |
| New Loan Interest | - |
| Interest Savings | - |
| Lifetime Savings (P&I) | - |
| Break-even Time | - |
| Pricing Match Status | - |
Disclaimer: The results provided by this mortgage calculator for refinance are estimates for informational and planning purposes only. They do not constitute a loan offer, commitment to lend, or guarantee of any specific loan terms or interest rate. Actual monthly saving will vary based on your credit profile, final loan terms, lender fees, property taxes, homeowners' insurance, and other factors determined at the time of application.
Refinancing your mortgage could lower your monthly payment, reduce the interest you pay overtime, or help you pay off your home sooner. But "could" is the key word. Whether refinancing makes financial sense depends entirely on your specific numbers: your current rate, your remaining balance, your new rate, and how long you plan to stay in the home. That's exactly what this mortgage refinance calculator is built to show you. In under two minutes, you can calculate your new estimated monthly payment, total lifetime interest savings, and the breakeven point.
How to Use This Mortgage Refinance Calculator
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Current loan balance :This is the amount you still owe on your mortgage today, not the original loan amount. Check your most recent mortgage statement for your outstanding principal balance.
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Remaining loan term :How many months or years are left on your current mortgage? This matters because refinancing resets your loan clock unless you match or shorten your remaining term.
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Current interest rate :Enter your existing rate. If you have an adjustable-rate mortgage, use your current rate, not the initial teaser rate.
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New interest rate :Enter the rate you've been quoted, or a current market estimate if you're still comparing lenders. Even a difference of a fraction of a percent changes your results meaningfully.
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New loan term :Choose 10, 15, 20, or 30 years. Matching your remaining term keeps your payoff date the same. Shortening it builds equity faster. Extending it lowers monthly payments but increases total interest paid.
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Estimated closing costs :Refinancing isn't free. Enter the closing costs your lender has quoted or use the calculator's estimate if you don't have a figure yet. Typical closing costs run between 2% and 5% of the loan amount.
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Review your results :The calculator shows your new estimated monthly payment, your monthly savings, your total savings over the life of the loan, and most importantly, your break-even point, the month at which your cumulative savings surpass your upfront refinance costs.
Should You Refinance?
Not every refinance is worth doing. Use this checklist before running your numbers through the home loan refinance calculator:
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Your current rate is at least 0.5% to 1% higher : A smaller rate drop can still be worthwhile, but the math needs to check out with your specific closing costs and timeline.
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You plan to stay in the home past your breakeven point : If you'll sell or move before you recoup closing costs, you'll come out behind.
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Your credit score has improved :A meaningfully higher score often unlocks a lower rate than you originally qualified for.
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You want to change your loan term :Refinancing from a 30-year to a 15-year mortgage builds equity faster and cuts total interest significantly, even if the rate difference is small.
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You want to tap home equity :A cash-out refinance lets you borrow against the equity you've built, often at a lower rate than a personal loan or credit card.
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You want to remove PMI :If your home has appreciated enough that your loan-to-value (LTV) ratio is now under 80%, refinancing can eliminate private mortgage insurance and lower your total monthly payment.
How to Calculate Your Refinance Savings
Here's how the math works in practice. For example, you have the following situation:
Current loan:
- Remaining balance: $320,000
- Current interest rate: 7.25%
- Remaining term: 27 years
- Current principal-and-interest payment: approximately $2,230/month
Proposed new loan:
- New interest rate: 6.25%
- New loan term: 30 years
- Estimated closing costs: $6,400
Results from the refinance calculator:
- New estimated monthly payment: approximately $1,971/month
- Monthly savings: approximately $259/month
- Breakeven point: approximately 25 months (just over 2 years)
- Total interest savings over the life of the loan: approximately $47,000
In this scenario, if you plan to stay in the home for more than 25 months, refinancing saves you money. If you're planning to sell in the next year or two, the closing costs aren't recovered in time and refinancing likely doesn't make sense.
These figures are illustrative only and based on a simplified principal-and-interest calculation. Actual results depend on your specific loan terms, lender fees, and credit profile.
Related Calculators
Home Equity Calculator
Your available equity determines whether you qualify for a refinance.
Check My Home Equity
Understanding the Refinance Breakeven Point
The breakeven point is the single most important output from any mortgage calculator for refinance decisions. It answers the question: how long until the monthly savings outweigh the upfront cost of refinancing?
How it's calculated:
- Breakeven (in months) = Total closing costs ÷ Monthly payment savings
- Using the example above: $6,400 ÷ $259 = approximately 25 months.
A shorter breakeven period is better. If your breakeven is under 24 months and you're not planning to move soon, refinancing is always worth doing. If the breakeven is 5 to 7 years out, you need to be confident about your long-term plans before committing.
Types of Mortgage Refinance
Before using a refinance home loan calculator, it helps to know which type of refinance you're evaluating, because each has a different goal and a different way of measuring success:
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Rate-and-Term Refinance : You replace your existing mortgage with a new one at a lower interest rate, a different term, or both. The loan balance stays roughly the same. The goal is lower monthly payments or less total interest paid.
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Cash-Out Refinance :You refinance for more than your remaining balance and receive the difference in cash. Useful for home improvements, debt consolidation, or large expenses. Your monthly payment may increase since you're borrowing more, but often at a much lower rate than unsecured debt.
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Cash-In Refinance :You bring money to closing to pay down your balance, either to qualify for a better rate, eliminate PMI, or reach a lower LTV. Less common but financially powerful for borrowers with available cash.
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Streamline Refinance : Available on FHA and VA loans. Reduces documentation requirements and may waive the appraisal. Designed to make refinancing faster and cheaper for government-backed loans.
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No-Closing-Cost Refinance :The lender covers closing costs in exchange for a slightly higher interest rate or rolls the costs into the loan balance. Appealing if you have limited cash but increases your total long-term cost. Run both options through the refinance mortgage calculator to see which saves more over your expected timeline.
What Affects Your Refinance Rate
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Credit score :Lenders tier their rates based on creditworthiness. A score above 740 typically unlocks the best available rates. A score between 620 and 680 may still qualify, but the rate will be noticeably higher.
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Loan-to-value (LTV) ratio :Lenders prefer an LTV at or below 80%. Higher LTV means more risk for the lender and usually a higher rate or required PMI.
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Debt-to-income (DTI) ratio :Lenders want to see that your total monthly debt payments, including the new mortgage, stay within acceptable limits. Most programs target a DTI under 43%, though some go higher for qualified borrowers.
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Current market conditions :Mortgage rates fluctuate daily in response to the bond market, Federal Reserve policy, and economic data. The rate you see today may be different tomorrow.
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Loan type and term :15-year loans typically carry lower rates than 30-year loans. VA loans often price more competitively than conventional loans for eligible borrowers.
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Rate lock timing :The rate you're quoted is only guaranteed once you lock it in. Floating too long in a rising-rate environment can cost you.
Refinance Closing Costs
Closing costs are the part of mortgage refinancing that most borrowers underestimate. According to the Consumer Financial Protection Bureau (CFPB), refinance closing costs typically run between 2% and 5% of the loan amount.
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Loan origination fee :Charged by the lender to process the new loan
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Appraisal fee :Required by most lenders to establish the current market value
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Title search and title insurance :Confirm ownership and protect the lender
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Credit report feeCharged to pull your credit during underwriting
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Recording fees :Paid to the local government to record the new mortgage
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Prepaid interest :Interest from your closing date through the end of the month
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Escrow deposits :Initial funding for your property tax and insurance escrow account
FAQ (Frequently Asked Questions)
How do I calculate if refinancing is worth it?
The clearest way to evaluate a refinance is to calculate your breakeven point: divide your total estimated closing costs by your projected monthly payment savings. If you'll stay in the home longer than the breakeven period, refinancing saves you money. If you sell or move before you reach that point, the upfront cost of refinancing likely outweighs the savings.
How much does it cost to refinance a mortgage?
Refinance closing costs typically range from 2% to 5% of the new loan amount. On a $350,000 refinance, that's $7,000 to $17,500 in upfront fees. Common costs include the origination fee, appraisal, title insurance, credit report fee, and prepaid interest.
When should you refinance your mortgage?
Refinancing typically makes sense when current rates are meaningfully lower than your existing rate, usually by at least 0.5% to 1%, and you plan to stay in the home long enough to recover your closing costs. It also makes sense when your credit score has improved significantly since your original loan.
How long does it take to break even on a refinance?
Breakeven time depends on your closing costs and how much your monthly payment drops. If closing costs total $7,000 and your monthly savings are $200, your breakeven is 35 months, just under three years. Most financial advisors consider a breakeven under 24 to 36 months a strong signal to refinance, assuming you plan to stay in the home.
Can I refinance my mortgage with bad credit?
Yes, in some cases, but your options narrow and your rate will generally be higher. Conventional refinances typically require a minimum credit score of 620, though the best rates go to borrowers above 740. FHA streamline refinances have more flexible credit requirements and may be available with lower scores.
