Mortgage Refinance Calculator
Calculate your potential savings when refinancing your mortgage
| Detail | Current Loan | Refinanced Loan | Difference |
|---|---|---|---|
| Monthly Payment | - | - | - |
| Remaining Interest | - | - | - |
| Loan Term | - | - | - |
| Total Cost (Principal + Interest) | - | - | - |
Refinancing may make sense if:
• Interest rates have dropped significantly (1%+ lower)
• You can shorten your loan term
• Your credit score has improved
• You need to lower monthly payments
• You want to switch from adjustable to fixed rate
• You can recoup closing costs quickly
Refinancing may NOT make sense if:
• You plan to move soon (before break-even)
• Closing costs are too high relative to savings
• You're extending your loan term significantly
• You're adding years of interest payments
• The savings are minimal
• You're taking cash out for non-essential spending
A Mortgage Refinance Calculator is a financial tool that helps homeowners determine whether refinancing their existing mortgage is beneficial. It compares the costs and savings of refinancing to help users make an informed decision.
How a Mortgage Refinance Calculator Works
The calculator evaluates:
Current Mortgage Details (remaining balance, interest rate, term).
New Loan Terms (refinance rate, loan term, closing costs).
Potential Savings (monthly payment reduction, interest savings, break-even point).
Key Inputs Required
Current Mortgage Information
Remaining loan balance
Current interest rate
Remaining loan term
New Loan Details
New interest rate
New loan term (e.g., 15, 20, or 30 years)
Closing costs (lender fees, appraisal, title insurance, etc.)
Additional Factors (Optional)
Cash-out refinance amount (if applicable)
Tax implications (if deductible)
Expected time in the home
Outputs Provided by the Calculator
New Monthly Payment – Compares current vs. refinanced payment.
Monthly Savings – Difference between old and new payments.
Total Interest Savings – Shows how much interest is saved over the loan term.
Break-Even Point – The time it takes for savings to cover closing costs.
Loan Payoff Comparison – How refinancing affects the total repayment timeline.
When Should You Use a Refinance Calculator?
Lowering Interest Rates – If current rates are lower than your existing mortgage.
Reducing Monthly Payments – Extending the loan term may lower payments.
Shortening Loan Term – Switching to a 15-year loan to save on interest.
Cash-Out Refinancing – Tapping into home equity for debt consolidation or renovations.
Removing PMI – If home value has increased, refinancing may eliminate private mortgage insurance.
Example Calculation
| Factor | Current Mortgage | Refinanced Mortgage |
|---|---|---|
| Loan Balance | $250,000 | $250,000 |
| Interest Rate | 5.0% | 3.5% |
| Loan Term Remaining | 25 years | 30 years |
| Closing Costs | - | $5,000 |
| Monthly Payment | $1,463 | $1,123 |
| Monthly Savings | - | $340 |
| Break-Even Period | - | 14.7 months |
| Total Interest Saved | - | $52,000 |
Limitations of a Refinance Calculator
Doesn’t Account for All Fees – Some costs (e.g., prepayment penalties) may be excluded.
Assumes Consistent Rates – Adjustable-rate mortgages (ARMs) may change over time.
Credit Score Impact – A hard credit inquiry may slightly lower your score.
Market Conditions – Future home value changes or rate fluctuations aren’t considered.
Best Mortgage Refinance Calculators
Bankrate Refinance Calculator – Provides detailed amortization schedules.
NerdWallet Refinance Calculator – Includes cash-out refinancing options.
Zillow Refinance Calculator – User-friendly with break-even analysis.
Credible Refinance Calculator – Compares multiple lender offers.