Refinance Calculator
Analyze if refinancing your current mortgage is the right financial move. Compare your old loan to a new one to see potential savings and calculate your new APR.
How to Use the Refinance Calculator
- Enter Current Loan Details: Provide information about your existing mortgage. You can either use your original loan terms or your current remaining balance.
- Enter New Loan Details: Input the terms of the potential new loan, including the new interest rate, term, and any associated points or closing costs.
- Click "Calculate": Instantly see a comparison. The results will highlight your lifetime savings, new monthly payment, and the break-even point to determine if refinancing is a good financial decision for you.
When does refinancing make sense? Refinancing is often a good idea if you can secure a significantly lower interest rate, want to shorten your loan term to pay it off faster, or need to switch from an adjustable-rate to a fixed-rate mortgage for more stability.
Frequently Asked Questions
What does this Refinance Calculator do?
This calculator helps you compare your current mortgage with a new potential loan. It calculates the difference in monthly payments, total interest paid, and determines your 'break-even point'—the time it takes for the savings from the new loan to cover its closing costs.
When is refinancing a good idea?
Generally, refinancing is beneficial if you can lower your interest rate by at least 0.75% to 1%, plan to stay in your home long enough to pass the break-even point, or if you need to tap into your home's equity with a cash-out refinance.
Does refinancing always save money?
Not always. If the closing costs are very high and the interest rate reduction is minimal, the upfront costs might outweigh the long-term savings, especially if you plan to sell the home before the break-even point.
What costs should I consider before refinancing?
Be aware of closing costs, which can include appraisal fees, origination fees, title insurance, and other charges. Our calculator includes fields for 'Points' and 'Costs' to help you factor these in.