Mortgage Refinance Calculator
Calculate your potential savings from refinancing your mortgage with our free calculator
Loan Details
Current Mortgage
New Mortgage
Refinance Results
Loan Comparison
| Current Loan | New Loan | |
|---|---|---|
| Monthly Payment | $1,580 | $1,306 |
| Interest Rate | 6.50% | 4.75% |
| Remaining Term | 25 years | 30 years |
| Total Interest | $224,000 | $181,500 |
Mortgage Refinance Calculator: Is Refinancing Worth It?
Our free refinance calculator helps you determine if refinancing your mortgage makes financial sense. This powerful tool calculates your potential savings, break-even point, and compares your current loan to a new loan with escrow considerations.
How the Refinance Calculator Works
The refinance savings calculator analyzes several key factors to determine if refinancing is beneficial:
- Current Loan Details: Balance, interest rate, and remaining term
- New Loan Terms: Proposed interest rate and loan term
- Closing Costs: Fees associated with refinancing
- Break-Even Analysis: When your savings cover closing costs
- Total Interest Savings: Lifetime savings from refinancing
By comparing these factors, our calculator tells you if it's worth refinancing your mortgage and how much you could save.
Key Benefits of Refinancing
Refinancing your mortgage can provide several advantages:
- Lower Monthly Payments: Reduce your monthly financial burden
- Interest Savings: Save thousands over the life of your loan
- Shorter Loan Term: Pay off your mortgage faster
- Cash-Out Option: Access home equity for major expenses
- Rate Type Change: Switch from adjustable to fixed rates
Frequently Asked Questions About Refinancing
A refinance calculator is a financial tool that helps homeowners determine if refinancing their mortgage could save them money. It compares your current mortgage terms with potential new loan terms to calculate monthly savings, total interest savings, and the break-even point.
Refinancing is typically worth it when the savings from a lower interest rate exceed the closing costs within your planned time in the home. Our calculator helps you determine your break-even point - when your monthly savings cover the refinance costs.
The break-even point is when your total savings from the lower monthly payment equal the closing costs of refinancing. If you plan to stay in your home beyond this point, refinancing typically makes financial sense.
Closing costs for refinancing typically range from 2% to 5% of the loan amount. This includes application fees, appraisal fees, title insurance, and other charges. Our calculator factors in these costs to determine your true savings.
This depends on your financial goals. A shorter term (15 years instead of 30) saves more interest but has higher monthly payments. A longer term reduces monthly payments but increases total interest paid. Use our calculator to compare both options.