Refinance Calculator
Compare your current mortgage with potential refinance options. Calculate break-even point and long-term savings.
Remaining Balance Over Time
- Remaining Balance
Principal vs Interest
- Principal
- Interest
Refinance calculator
Formula
Current loan monthly payment:
New loan monthly payment:
Monthly savings:
Worked example
Current loan: $200,000 at 5% over 30 years, 10 years remaining
- Original payment: $1,073.64
- Remaining balance after 10 years: $162,600
- New loan: $162,600 at 3.5% over 20 years
- New payment: $933.27
- Monthly savings: $140.37
Break-even point:
If refinancing costs $3,000:
How to use
- Enter your current loan details
- Enter the remaining balance and term
- Enter the new loan terms
- Enter refinancing costs
- Click "Calculate"
Break-even analysis
The break-even point is when accumulated savings equal refinancing costs. Only refinance if you'll stay in the home past this point.
When to refinance
- Interest rates have dropped significantly
- Your credit score has improved
- You want to change loan term
- You want to switch from ARM to fixed-rate
- You want to cash out home equity
Common use cases
- Rate-and-term refinance
- Cash-out refinance
- Streamline refinance (FHA/VA)
- Debt consolidation
- Investment property financing
FAQ
Is refinancing worth it? Calculate the break-even point. If you'll stay past it, yes.
What are closing costs? Typically 2-5% of the loan amount, including appraisal, title, and lender fees.
Can I roll costs into the loan? Yes, but this increases your loan balance and interest paid.
How does credit score affect rates? Higher scores qualify for lower rates, saving you thousands.
Should I refinance to a shorter term? It increases monthly payment but reduces total interest dramatically.
What about cash-out? You borrow more than you owe, getting cash but increasing your loan balance.