Refinance Calculator

Determine if refinancing your mortgage or loan will save money by comparing current vs new loan terms.

Calculator

Calculator Details

Enter your information to calculate results

Current Loan Details

New Loan Details

Results
$280
Monthly Savings
18
Break-even (months)

Payment Comparison

Monthly Payment
$1,688
$1,408
Interest Rate
6.5%
5.25%
Loan Term
25 years remaining
30 years
Total Interest
$256,405
$251,923

Refinance Analysis

Break-even Point
18 months
Time to recover closing costs
Total Savings
$4,482
Interest savings over loan life
Refinancing Recommended

You'll break even in 18 months and save $280 monthly.

How It Works

Refinancing replaces your current mortgage with a new loan, potentially offering better terms, lower rates, or access to home equity.

Types of Refinancing:

  • Rate-and-Term: Change interest rate or loan term
  • Cash-Out: Borrow against home equity for cash
  • Cash-In: Pay down principal to eliminate PMI
  • Streamline: Simplified process for existing borrowers

When to Consider Refinancing:

  • Interest rates have dropped significantly
  • Your credit score has improved
  • You want to change loan terms
  • You need cash for home improvements

Examples

Example 1: Rate Reduction

Current: $300,000 at 6.5% (25 years left)
New: $300,000 at 5.0% (30 years)
Closing costs: $6,000
Monthly savings: $312
Break-even: 19 months
Total savings: $47,000

Example 2: Cash-Out Refinance

Current: $200,000 at 6.0%
New: $250,000 at 5.5% (cash out $50,000)
Closing costs: $5,000
Cash received: $45,000
Payment increase: $189
Access to home equity

Compare

Rate & Term

Purpose: Lower rate or change term
Cash out: None
Best for: Reducing payments or interest

Cash-Out

Purpose: Access home equity
Cash out: Up to 80% of home value
Best for: Home improvements, debt consolidation

Streamline

Purpose: Quick refinance
Requirements: Minimal documentation
Best for: FHA/VA loan holders