Mortgage Refinance Calculator
Refinancing replaces your home loan with a new one, often at a different rate or term. This compares the payment you have now with the new payment, and shows how many months of savings it takes to recover the closing costs.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Each payment is worked out with the standard loan formula on the balance you owe. The current payment uses the current rate and months left, and the new payment uses the new rate and new term.
Break-even months is the closing costs divided by the monthly saving. A longer new term can lower the payment while adding total interest, so compare totals too. This tool shows payments only.
Worked example
On $260,000.00 owed, the payment moves from $1,837.63 to $1,558.83 a month, a saving of $278.79 a month. With $6,000.00 in closing costs, it takes about 22 months to break even.
Questions
What are closing costs?
They are fees for the new loan, such as appraisal, title and lender charges. The lender's estimate lists them.
Is a longer term always worse?
It lowers the payment but usually adds interest over time. Compare the total paid under each choice.
Does a lower payment mean I should refinance?
This tool shows the math. Whether it fits depends on how long you will keep the home and your other goals.
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