Mortgage Refinance Calculator
Compare your current mortgage with a proposed refinance. Estimate the payment change, potential monthly savings and how long it could take to recover the refinance costs.
Review Your Refinance Options
How to Use the Refinance Calculator
- Enter your current principal balance, interest rate and remaining loan term.
- Enter the proposed loan amount, interest rate and term.
- Include estimated closing costs.
- Note whether costs would be paid separately or added to the new loan.
- Compare monthly and long-term results using the same assumptions.
Use your current principal-and-interest payment when possible. Escrowed taxes and insurance may change independently of the refinance.
Understanding the Result
Monthly payment change
Compares the estimated principal-and-interest payments for the current and proposed loans.
Monthly savings
A lower payment does not automatically mean a lower lifetime cost, especially if the new loan restarts a longer term.
Simple break-even period
Divides estimated refinance costs by estimated monthly savings. It is a useful screen, but it does not include every financial factor.
Total interest comparison
Review this alongside the monthly payment, remaining term and your future plans for the property.
Worked Example
Illustrative example only—not a rate quote.
Assume a homeowner has a $400,000 balance, 28 years remaining, a 7.00% rate and estimated principal and interest of $2,718 per month. A proposed $400,000 loan at an illustrative 6.25% over the same 28-year term would have estimated principal and interest of approximately $2,524 per month.
That is estimated monthly savings of about $195. With $6,000 in closing costs paid separately, the simple break-even period would be approximately 31 months.
Questions to Consider Before Refinancing
- How long do you expect to keep the new mortgage?
- Are closing costs being paid separately or added to the balance?
- Does the new term extend the payoff date?
- Would the refinance remove mortgage insurance or change escrow expenses?
- Are you taking cash out or only changing the rate and term?
Review Your Refinance Options
Compare current pricing, closing costs and the proposed loan term before deciding whether the potential benefit fits your plans.