Mortgage Refinance Calculator
Compare your current mortgage with a refinanced loan. Enter your current remaining balance, interest rate, and loan term, then specify the new rate and term to see your monthly savings, break-even point, and lifetime savings after closing costs.
Current Mortgage
How much you still owe
Your current APR
Months left on current loan
New Mortgage
New APR for refinanced loan
Duration of new loan
Fees and origination costs
Monthly Savings
$172.92
per month with new mortgage
Lifetime Savings Breakdown
Current Monthly Payment
$1,520.06
Your current mortgage payment
New Monthly Payment
$1,347.13
Estimated refinanced payment
Break-Even Point
18 months
When you recover closing costs
Net Lifetime Savings
$59,251.87
Total savings after closing costs
Total Cost Comparison
Monthly Savings
$172.92
Total Savings
$59,251.87
Cost Breakdown Details
Current Mortgage
$547,220.13
Principal: $300,000.00 + Interest: $247,220.13
New Mortgage
$487,968.26
Principal: $300,000.00 + Interest: $184,968.26 + Closing: $3,000.00
Note: This calculator provides estimates based on standard amortization. Actual refinance savings may vary based on credit score, current market conditions, appraisal requirements, and lender-specific fees.
Break-Even Point: This is when your monthly savings equals the closing costs paid upfront.
How to Use
Enter your current mortgage details: remaining balance, current interest rate, and how many months you have left. Then enter the new interest rate you qualify for, choose your desired new loan term (10, 15, 20, or 30 years), and estimate your closing costs. The calculator instantly shows your monthly savings, when you'll break even, and your total lifetime savings after refinancing.
Formula
Where M is the monthly payment, P is the loan principal (remaining balance), r is the monthly interest rate (APR/12), and n is the number of monthly payments. The calculator applies this formula to both your current mortgage and refinanced loan, then compares total costs to determine savings. Break-even point is calculated as: Closing Costs ÷ Monthly Savings = Break-even Months.
Frequently Asked Questions
- When does it make sense to refinance my mortgage?
- Refinancing makes sense when new interest rates are 0.5-1% lower than your current rate, and you plan to stay in the home long enough to recover closing costs through monthly savings. Consider refinancing if your credit score has improved since you got your original mortgage, or if you want to switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage for payment stability.
- What is the break-even point and why does it matter?
- The break-even point is when your monthly payment savings equal the upfront closing costs you paid for the refinance. For example, if closing costs are $3,000 and you save $150 per month, your break-even point is 20 months. You should only refinance if you plan to stay in the home past your break-even date, otherwise you won't recover the closing costs.
- What costs are involved in refinancing a mortgage?
- Typical refinance closing costs range from 2-5% of the loan amount and include origination fees, appraisal fees, credit checks, title insurance, underwriting, and legal fees. Some lenders offer "no-cost" or "low-cost" refinances, but these often come with a higher interest rate. Always compare the true cost of refinancing versus your monthly and lifetime savings.