Mortgage Refinance Calculator
Determine if refinancing your mortgage makes sense. Compare current loan vs new loan, calculate break-even point, and see lifetime savings on interest payments.
4 minutes Medium
How to Use This Calculator
- Enter your current loan details (balance, rate, remaining term, payment)
- Input the new loan terms (rate, term, closing costs, points)
- Click Calculate to compare your current and new loan
- Review the break-even analysis to see when refinancing pays off
- Examine the amortization comparison for total cost analysis
Current Loan Details
$
Outstanding loan balance
%
Your current annual interest rate
years
Years left on your current loan
$
Leave 0 to auto-calculate
New Loan Terms
%
Offered interest rate on new loan
years
Term of the new loan
$
Fees, appraisal, title insurance, etc.
pts
Each point = 1% of loan amount
🏠 When Does Refinancing Make Sense?
Refinancing typically makes sense when you can lower your interest rate by at least 0.5-1%, plan to stay in your home longer than the break-even period, and the total cost savings outweigh the closing costs. Use this calculator to determine your specific break-even point.
💰 Common Reasons to Refinance
- Lower monthly payment: Reduce your rate or extend term
- Shorten loan term: Pay off faster with a 15 or 20 year loan
- Switch loan type: Convert ARM to fixed rate for stability
- Remove PMI: If your home has appreciated above 80% LTV
- Cash-out equity: Access home equity for major expenses
📋 Refinancing Costs to Consider
- Application fee: $250-$500
- Appraisal: $300-$600
- Title search & insurance: $700-$1,500
- Origination fee: 0.5-1.5% of loan
- Discount points: 1% of loan per point (optional, lowers rate)
- Total typical costs: 2-5% of loan amount
⚠️ Watch Out For
- Extending your loan term resets the clock on interest
- Prepayment penalties on your current loan
- Rolling closing costs into the new loan increases total cost
- Your credit score affects the rate you qualify for
- Home value must support the new loan amount
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