Calculate Your Refinance Savings
Compare your current loan to a new loan and see monthly savings, lifetime savings, and break-even timeline
Refinance Calculator
See if refinancing your mortgage could save you money
💡 Pro Tip
Even a 0.5% rate reduction can save you thousands over the life of your loan. The key is ensuring your break-even point makes sense for how long you plan to stay in your home.
How the Refinance Calculator Works
Our refinance calculator compares your existing mortgage to a new loan scenario, showing you exactly how much you'll save monthly and over the life of the loan. It factors in your new interest rate, closing costs, remaining loan balance, and how long you plan to stay in your home.
Whether you're looking to lower your payment, shorten your loan term, eliminate PMI, or tap into your equity with a cash-out refinance, this tool gives you the numbers you need to make an informed decision.
What Makes Our Calculator Different
- Break-Even Analysis: Shows exactly when you'll recoup your closing costs through monthly savings
- Lifetime Savings: Calculates total interest savings over the remaining life of your loan
- Cash-Out Scenarios: Model equity extraction and see how it affects your payment
- Term Comparisons: Compare 30-year vs 15-year options to find the right balance
- Closing Cost Impact: Factors in real closing costs to show true net savings
Refinancing isn't just about getting a lower rate - it's about optimizing your entire mortgage strategy. This calculator helps you evaluate all the variables so you can make the best decision for your financial goals and timeline.
Ready to Lock In Your Savings?
After calculating your savings, talk to our refinance experts to get a personalized quote and lock in today's low rates.
Ready to Take the Next Step?
Let our expert team help you turn these calculations into reality
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Why Refinancing Strategy Matters
Missed Rate Drops
Rates can change quickly - waiting too long means missing out on thousands in potential savings
Closing Cost Confusion
Without understanding break-even analysis, you might refinance when it doesn't make financial sense
Poor Timing
Refinancing right before selling means paying closing costs without reaping long-term benefits
Resetting the Clock
Refinancing into a new 30-year loan when you're 10 years in can cost more long-term
Understanding Refinancing
When to Refinance
The classic rule is to refinance when you can lower your rate by at least 1%, but with today's low closing costs, even a 0.5% reduction can make sense. Other good reasons: eliminating PMI after reaching 20% equity, switching from ARM to fixed rate, or consolidating high-interest debt through cash-out refinancing.
Cash-Out vs Rate-and-Term
Rate-and-term refinancing simply replaces your existing loan with better terms - no cash changes hands. Cash-out refinancing lets you tap into your equity by borrowing more than you owe, receiving the difference in cash. This is ideal for home improvements, debt consolidation, or major expenses, but typically comes with slightly higher rates.
Break-Even Analysis
Your break-even point is critical for decision-making. If closing costs are $3,000 and you save $150/month, you'll break even in 20 months. If you plan to stay in your home longer than that, refinancing makes sense. If you're selling soon, the upfront costs may not be worth it. Our calculator shows your break-even timeline clearly.
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Frequently Asked Questions
When should I consider refinancing my mortgage?
Consider refinancing when interest rates drop at least 0.5-1% below your current rate, when you can eliminate PMI by reaching 20% equity, when you want to change loan terms (like switching from 30-year to 15-year), or when you need to tap into home equity for debt consolidation or major expenses. Use our calculator to see if the savings justify closing costs.
What is a break-even point and why does it matter?
Your break-even point is when the monthly savings from refinancing equal the closing costs you paid. For example, if closing costs are $4,000 and you save $200/month, you break even in 20 months. If you plan to stay in your home beyond this point, refinancing makes financial sense.
What's the difference between rate-and-term vs cash-out refinance?
A rate-and-term refinance changes your interest rate or loan term without taking cash out - you're simply replacing your existing loan. A cash-out refinance lets you borrow more than you owe and receive the difference in cash, typically used for home improvements, debt consolidation, or other major expenses. Cash-out refis usually have slightly higher rates.
How much does refinancing cost?
Refinancing typically costs 2-5% of your loan amount in closing costs. This includes appraisal fees ($400-600), title insurance, origination fees, and other lender charges. Some lenders offer no-closing-cost refis where costs are rolled into the loan or offset with a slightly higher rate. Use our calculator to determine if the long-term savings outweigh upfront costs.
Can I refinance if I have less than 20% equity?
Yes, you can refinance with less than 20% equity, but you'll likely need to continue paying PMI unless you're using an FHA Streamline or VA IRRRL program. Some conventional loans allow refinancing with as little as 5% equity. However, having at least 20% equity gives you access to better rates and eliminates PMI.
Will refinancing affect my credit score?
Refinancing causes a temporary small dip in your credit score (usually 5-10 points) due to the hard inquiry and new account. However, your score typically recovers within a few months. The long-term benefits of a lower payment and less debt often outweigh the short-term credit impact.
How long does the refinance process take?
A typical refinance takes 30-45 days from application to closing. Streamline programs (FHA Streamline, VA IRRRL) can be faster, sometimes completing in 2-3 weeks. Factors that affect timing include appraisal scheduling, document gathering, and lender workload. Our team works to close as quickly as possible while ensuring accuracy.
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