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Mortgage Refinance Calculator: How Much Could You Save?

Mortgage Refinance Calculator

Current Mortgage Amount

Current Interest Rate (APR)

Remaining Loan Term (Years)

New Home Loan Information

New Interest Rate (APR)

New Loan Term

Calculator Results

Current New Savings
Interest Rate
Monthly Payment per month
Term Length years years years
Total Interest
Total Cost

By refinancing your home loan, you could lower your monthly payments by . You could save overall on your mortgage and pay it off years ahead of schedule.

Or check out our cash-out refinance calculator.

Refinancing your mortgage means taking out a new loan to repay your current mortgage debt. Homeowners might refinance to lower their interest rate, reduce monthly payments, or take cash out for other uses, such as debt repayment. It’s crucial to ensure refinancing makes financial sense. Our mortgage refinance calculator helps you understand its impact on total repayment costs and monthly payments.

How to use our refinance mortgage calculator

Using our refinance mortgage calculator is simple and effective for planning your refinance. Follow these steps to get an accurate estimate of your new monthly payments and total interest savings:

  1. Enter your current loan details: Provide the remaining loan balance, current interest rate, and remaining loan term.
  2. Input your new loan details: Enter the new interest rate and loan term.
  3. Calculate: See your new estimated monthly payment, total interest savings, and the breakeven point for the refinance.

This tool helps you understand the potential financial impact of refinancing your mortgage.

Why use a home refinance calculator?

A home refinance calculator helps you determine whether refinancing your home is a smart financial decision. By providing a clear picture of your new monthly payments, total interest costs, and breakeven point, the calculator allows you to:

  • Compare different scenarios: See how various interest rates and loan terms affect your payments and total savings.
  • Assess affordability: Ensure the new payment fits within your budget.
  • Plan for costs: Understand the closing costs and how long it will take to recoup them through monthly savings.
  • Make informed decisions: Evaluate whether refinancing aligns with your long-term financial goals.

What is mortgage refinancing?

Mortgage refinancing involves replacing your current mortgage with a new one, typically to achieve a lower interest rate, reduce monthly payments, change the loan term, or take cash out of your home equity.

The new loan pays off the old one, and you start making payments on the new mortgage. Refinancing can save you money, but it’s important to consider the closing costs and how long you plan to stay in the home.

Should I refinance my mortgage?

Refinancing your mortgage can be a smart financial move for several reasons. The most common reason is to save money on your current loan. Refinancing to a loan with a lower interest rate, a longer repayment period, or both can reduce your monthly mortgage payment. However, extending your mortgage term might increase the total interest paid over the loan’s life.

Using our refinance mortgage calculator, you can see how refinancing affects your monthly payments and total interest costs. For instance, if you have a $200,000 mortgage at 5.3% with 320 months left and a balance of $192,000, refinancing to a 360-month loan at 4.25% with $3,000 in closing costs could save you $229 per month and $19,587 over the loan’s life. You’d break even on the refinance fees in 14 months.

Cash-out refinance

A cash-out refinance lets you borrow more than your current loan balance, tapping into your home equity to pay down debt or finance home improvements. However, this could increase your monthly payments and total interest.

For example, if you refinance a $192,000 loan at 4.25% to a $210,000 loan at 5.25% with $3,000 in closing fees, your monthly payments would increase by $114, and you’d pay an additional $97,355 in interest over the loan’s life. This option only makes sense if you save more than the additional interest cost by refinancing other debts.

Reasons to refinance a mortgage

Homeowners often refinance their mortgages for several key reasons:

  • Reduce your total monthly payment: Refinancing to a loan with a lower interest rate or extending the repayment term can lower your monthly mortgage payment, providing more flexibility in your budget.
  • Reduce total interest costs: Securing a lower interest rate through refinancing can reduce your monthly payments and overall interest costs. However, if you extend your loan term, your total interest costs might increase despite lower monthly payments.
  • Switch loan servicers: If you’re unhappy with your current mortgage lender, refinancing allows you to move your loan to a different servicer.
  • Take cash out of your home: A cash-out refinance enables you to borrow more than your current loan balance, allowing you to use your home equity for debt consolidation, home improvements, or other significant expenses.

Reasons not to refinance a home

Refinancing might not always be the best option. Consider avoiding a refinance in the following scenarios:

  • You plan to move soon: f you expect to sell your home and relocate soon, the savings from lower monthly payments may not offset the refinancing fees.
  • You can’t qualify for a lower interest rate: Refinancing is unwise if the new interest rate is higher than your current rate. This situation can occur if your credit score has declined or if overall interest rates have risen since you obtained your original loan.


How accurate is the refi calculator?

Our refinancing calculator provides a close estimate based on the information you enter. For precise figures, consult your lender. It will consider additional factors, such as your credit score, loan-to-value ratio, and specific loan terms.

What are the benefits of refinancing a mortgage?

Refinancing can lower your interest rate, reduce monthly payments, shorten your loan term, or allow you to take cash out of your home equity. Each benefit depends on your financial goals and current loan terms.

What are the costs associated with refinancing?

Refinancing costs typically range from 2% to 5% of the loan amount and can include loan origination fees, appraisal fees, title insurance, and other closing costs. Calculating these costs is important to determine whether refinancing is worthwhile.

How long does the refinancing process take?

The refinancing process usually takes 30 to 45 days from application to closing. However, this timeline can vary depending on the lender, the complexity of your financial situation, and the appraisal process.

Can I refinance with bad credit?

Refinancing with bad credit can be challenging, but it’s not impossible. Some lenders specialize in working with borrowers with lower credit scores. However, you may face higher interest rates and stricter terms.