Mortgage Refinance Calculator
Important Disclaimer:
This calculator provides estimates based on the information you enter and is intended for educational purposes only. The actual costs, rates, and savings of a refinance may vary based on:
- Your credit score and financial situation
- Current market conditions and lender requirements
- Additional fees and closing costs not included in this calculation
- State-specific refinancing regulations and requirements
Always consult with qualified mortgage professionals and financial advisors before making refinancing decisions. Results from this calculator should not be considered as financial or mortgage advice.
Scenario 1
Current Loan
New Loan
By refinancing your $300,000.00 loan from 6.5% to 5.5%, you could save $237.68 each month on your mortgage payment. With closing costs of $4,000.00, you would break even on your refinance costs in 1.4 years (17 months). With a break-even period of only 1.4 years, this refinance opportunity is particularly attractive and could provide significant long-term savings.
Over the first five years, you would save approximately $14,260.80 in monthly payments (minus $4,000.00 in closing costs).
Understanding Mortgage Refinancing
Refinancing your mortgage means replacing your current loan with a new one, typically to take advantage of lower interest rates or change your loan term. This calculator helps you determine if refinancing makes financial sense for your situation.
Key Refinancing Factors:
- Current interest rates vs. your existing rate
- How long you plan to stay in your home
- Closing costs and fees
- Your remaining loan term
When Should You Consider Refinancing?
Refinancing might make sense when:
- Interest rates are significantly lower than your current rate
- You want to change your loan term
- You want to switch from an adjustable to a fixed rate
- You want to cash out home equity
Break-Even Analysis:
The break-even point is when your monthly savings equal the cost of refinancing. Consider:
- Total closing costs and fees
- Monthly payment savings
- How long you plan to keep the loan