Mortgage Refinance Calculator

Mortgage Refinance Calculator

Evaluate monthly payment changes, break-even timeline, and total interest savings

Current Loan Details
New Loan Details
Monthly Payment Savings
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New Monthly Payment
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Old Monthly Payment
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Lifetime Net Savings
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How to Determine If Refinancing Is Worth It

  1. Enter your current Remaining Principal Balance, Interest Rate, and Years Left.
  2. Input the proposed New Interest Rate and target New Loan Term.
  3. Include anticipated Closing Costs (typically 2% to 5% of total loan amount).
  4. Click “Calculate Refinance Savings” to evaluate break-even duration and overall financial gain.

Key Refinancing Calculations

Monthly Payment = P * [ r(1+r)^n ] / [ (1+r)^n – 1 ]

Break-Even Point (Months) = Total Closing Costs / Monthly Payment Savings

Net Lifetime Savings = (Remaining Old Payments) – (Total New Payments + Upfront Closing Costs)

Frequently Asked Questions (FAQ)

What is a break-even point in refinancing?

The break-even point is the number of months required for your accumulated monthly payment savings to surpass the upfront closing costs incurred from refinancing.

When does it make sense to refinance a mortgage?

Refinancing generally makes sense if you can lower your interest rate by at least 0.75% to 1%, reduce your term without an unsustainable payment increase, or plan to remain in the home past your break-even point.

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