Mortgage Refinance Calculator
Evaluate the financial benefits of replacing your current loan with a new one. Our refinance calculator helps you compare interest rates, calculate potential monthly savings, and determine your “break-even” point. Use these insights to decide if refinancing aligns with your long-term financial goals, whether you want to lower your monthly payments or pay off your home faster.
How This Calculator Works
Our mortgage paymant is designed to provide you with accurate and quick estimates, helping you make informed financial decisions. Here’s how it works:Input Your Details:
Enter the required information, such as loan amount, interest rate, and loan term, into the calculator fields
Instant Calculation:
The calculator processes your data in real-time, using advanced algorithms to provide precise results.
View Your Results:
Instantly see your estimated monthly payments, total interest, and repayment schedule.
Adjust and Compare:
Modify the inputs to explore different scenarios and find the loan option that works best for you.
Got Questions?
How much can I save by refinancing my mortgage?
Your savings depend on the difference between your current interest rate and the new rate, the remaining balance on your loan, and the closing costs. Even a 0.5% to 1% reduction in your interest rate can save you thousands of dollars over the life of the loan.
What is the "break-even point" in a refinance?
The break-even point is the time it takes for your monthly savings to cover the total closing costs of the new loan. For example, if your refinance costs $3,000 and you save $100 per month, your break-even point is 30 months. If you plan to stay in the home longer than that, refinancing usually makes sense.
What are the typical costs of refinancing?
Refinancing generally costs between 2% and 6% of the total loan amount. These fees often include home appraisals, application fees, title search and insurance, and lender origination fees. It is important to factor these costs into your calculation to ensure a net gain.
Can I refinance my mortgage if I have a low credit score?
Yes, it is possible, but you may not qualify for the lowest advertised market rates. Some government-backed programs, like the FHA Streamline Refinance or VA Interest Rate Reduction Refinance Loan (IRRRL), have more flexible credit requirements for existing borrowers.
Should I refinance to a shorter loan term?
Switching from a 30-year to a 15-year mortgage usually allows you to secure a lower interest rate and pay off your home much faster. While your monthly payments will likely increase, you will save a significant amount in total interest paid over the life of the loan.
