Mortgage Refinance Calculator

The calculator estimates the monthly principal-and-interest payment for your remaining current mortgage and compares it with the payment on the proposed refinance loan.

The new loan amount includes the current loan balance, refinance closing costs, and any cash-out amount entered. The tool then estimates monthly savings, remaining interest, new-loan interest, lifetime savings, and the closing-cost break-even period.

A refinance may lower the monthly payment, reduce the interest rate, change the repayment term, or provide cash from home equity. However, a longer term or additional borrowing can reduce the total financial benefit.

The selected currency is used as the denomination for all amounts. The calculator does not perform exchange rate conversion when you change the currency.

The monthly payments are estimated using the standard amortized loan-payment formula. A break-even result is only available when the estimated new payment is lower than the existing payment.

A mortgage refinance calculator compares an existing home loan with a proposed replacement mortgage. It can help estimate whether changing the interest rate, loan term, closing costs, or loan amount may lower the monthly payment or reduce long-term borrowing costs.

Useful refinance comparisons include the current and proposed payments, total interest, monthly savings, closing-cost break-even time, cash-out amount, and estimated lifetime savings.

Refinancing may be worth considering when the new loan offers a lower interest rate, a more suitable repayment term, reduced monthly payments, or total savings that justify the closing costs.

The break-even period is an important part of the decision. If you expect to keep the mortgage longer than the estimated time required to recover the closing costs, the refinance may be more beneficial.

A lower payment alone does not prove that refinancing saves money. Extending the loan over more years can reduce the payment while increasing the amount of interest paid over time.

The refinance break-even point estimates how many months of payment savings are needed to recover the upfront closing costs.

With the current inputs, the closing costs are $6,000.00 and the estimated monthly savings are $343.62.

The estimated break-even result is 18 months.

The break-even calculation is a useful starting point, but it does not include every possible tax, insurance, escrow, fee, or opportunity-cost consideration.

A refinance can lower the required monthly payment by extending the mortgage over a longer period. Although this can improve monthly cash flow, it may increase the total amount of interest paid.

Compare both the monthly savings and estimated lifetime savings. A refinance that provides short-term payment relief may still cost more over the full repayment period.

Closing costs and cash-out borrowing can also increase the new loan balance and reduce the benefit of a lower interest rate.

A rate-and-term refinance replaces the current mortgage primarily to change the interest rate, repayment term, or both. The objective may be a lower payment, reduced interest, or a different repayment schedule.

A cash-out refinance replaces the mortgage with a larger loan and provides part of the difference to the borrower in cash. The additional amount increases the new mortgage balance.

When evaluating cash-out refinancing, compare the new payment, total interest, closing costs, loan balance, and break-even timeline rather than focusing only on the cash received.

In the current example, the remaining loan balance is $300,000.00, the existing annual rate is 7.25%, and the proposed refinance rate is 5.95%.

The calculator estimates a current monthly payment of $2,168.42 and a new monthly payment of $1,824.80.

This produces estimated monthly savings of $343.62. The estimated break-even point is 18 months.

The estimated lifetime savings are -$12,401.65. Review this figure alongside the loan term, total interest, closing costs, and any cash-out amount.

This calculator provides estimates based on the values entered. Actual lender calculations may differ because of loan fees, prepaid interest, discount points, taxes, insurance, escrow requirements, mortgage insurance, credit qualifications, rate locks, and lender-specific rules.

The calculator compares estimated principal-and-interest payments and loan interest. It does not guarantee approval, an available interest rate, a particular mortgage offer, or future savings.

Selecting another currency changes how amounts are labelled and formatted. It does not convert the entered amounts or adjust them for exchange rates.

Before refinancing, review an official loan estimate and compare the annual percentage rate, closing costs, repayment term, total payments, prepayment conditions, and other lender disclosures.