Mortgage Refinance Calculator
Calculate if refinancing your mortgage saves money. Compare old vs new payments, break-even point, and total lifetime savings.
How This Calculator Works
Calculation methodology and assumptions
This calculator computes new mortgage payments after refinancing. To determine if refinancing makes sense, compare your new total cost (including closing costs, typically 2-5% of loan) against continuing your current mortgage. The break-even point is when cumulative savings exceed refinance closing costs.
Frequently Asked Questions
When should I refinance my mortgage?
Consider refinancing when you can reduce your rate by at least 0.5-1%, when you want to switch from adjustable to fixed rate, or when you want to shorten your loan term. Factor in closing costs to ensure you break even within 2-3 years.
How much does refinancing cost?
Refinancing typically costs 2-5% of the loan amount in closing costs. On a $300,000 loan, that is $6,000-$15,000. Some lenders offer "no-closing-cost" refinances at a slightly higher rate.