Mortgage Refinance Calculator
Should you refinance? Compare your current mortgage with a new loan to see potential monthly savings, lifetime interest savings, and how long it will take to break even on closing costs.
Mortgage Refinance Calculator
Analyze potential savings from refinancing your home loan
Current Loan
New Loan
Extra cash you want to take out for renovations, debt, etc.
Refinancing may not save you money monthly.
Payment Comparison
Loan Stats
📚 Guide to Mortgage Refinancing
🤔 When to Refinance
Refinancing typically makes sense if you can lower your interest rate by 0.5% to 1% or more, or if you want to shorten your loan term to build equity faster.
⚖️ The Break-Even Point
This is the time it takes for your monthly savings to cover the closing costs of the new loan.
Formula: Closing Costs / Monthly Savings = Months to Break Even.
💸 Closing Costs
Refinancing isn't free. Expect to pay 2-5% of the loan amount in closing costs (origination fees, appraisal, title insurance, etc.).
Frequently Asked Questions
Does refinancing hurt my credit score?
Initially, yes, slightly. The lender will do a hard inquiry which may drop your score by a few points. However, if you make payments on time, it can improve your score over the long run by lowering your debt-to-income ratio.
What is a cash-out refinance?
A cash-out refinance allows you to borrow more than you owe on your home and take the difference in cash. This is often used for home improvements or debt consolidation, but it increases your total debt.