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REFINANCE CALCULATOR

Free Refinance Calculator

Evaluate your mortgage refinancing savings with our free Refinance Calculator. Compare current vs new loan terms and see if refinancing makes financial sense.

1. Current Mortgage

Your current monthly mortgage payment

2. New Loan (Refinance)

Estimated closing costs for refinancing
Points paid to lower interest rate

3. Additional Options

Additional cash taken out during refinance
Your marginal tax rate for interest deduction

4. Reference & Notes

REFINANCE ANALYSIS

Loan Comparison & Savings Projection

Reference: REFI-2026-001
Date: 2026-09-08
Current Payment $1,350.00
New Payment $1,150.00
Monthly Savings $200.00
Total Lifetime Savings $35,000.00
Break-Even Period 2.1 Years
Total Interest Paid (Current) $150,000.00
Total Interest Paid (New) $115,000.00
Refinance Recommendation ✅ Refinance

Cost Breakdown

Current Interest $150,000.00
New Interest $115,000.00
Closing Costs $5,000.00
Net Savings $30,000.00

Loan Comparison

Current Rate 6.50%
New Rate 5.50%
Rate Reduction -1.00%

Refinance Formula

Lifetime Savings = (Current Interest - New Interest) - Closing Costs

($150,000 - $115,000) - $5,000 = $30,000

Refinancing saves you $30,000 over the life of the loan. Break-even in 2.1 years.

Notes

Refinance analysis for mortgage planning

This calculation is for informational purposes only. Consult a mortgage professional for personalized advice.
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Date
GUIDE

How to Use the Refinance Calculator

Evaluate your mortgage refinancing savings. Follow these steps to compare current vs new loan terms:

1

Enter Current Mortgage

Input your remaining balance, current rate, remaining term, and monthly payment.

2

Set New Loan Terms

Enter the new interest rate, loan term, closing costs, and discount points.

3

Add Additional Options

Include cash-out amount, tax rate, and inflation rate if applicable.

4

Review Results

See monthly savings, lifetime savings, break-even period, and recommendation.

5

Export & Share

Save your analysis as a draft, print results, or download a PDF.

BENEFITS

Why Use a Refinance Calculator?

Evaluating refinance options is essential for mortgage planning. Our calculator helps you:

  • Evaluate Refinancing Savings: See if refinancing makes financial sense.
  • Compare Loan Terms: Compare current vs new mortgage terms.
  • Calculate Break-Even: Know when you'll recoup closing costs.
  • Plan Your Mortgage: Make informed refinancing decisions.
  • Privacy Guaranteed: All calculations run in your browser.

Understanding Refinancing

  • Refinance: Replacing current mortgage with a new loan.
  • Closing Costs: Fees associated with refinancing.
  • Break-Even Period: Time to recoup closing costs.
  • Rate Reduction: Difference between old and new rates.
  • Lifetime Savings: Total savings over loan life.

Who Should Use This Tool?

  • Homeowners: Evaluate refinance options.
  • Mortgage Planners: Help clients with refinance decisions.
  • Financial Planners: Assess mortgage strategies.
  • Anyone with a Mortgage: Consider refinance opportunities.
BEST PRACTICES

Tips for Refinancing

📊

Check Rate Reduction

Aim for at least 0.5-1% rate reduction to make refinancing worthwhile.

📈

Calculate Break-Even

Ensure you'll stay in the home long enough to recoup closing costs.

💰

Compare Closing Costs

Get quotes from multiple lenders to find the best deal.

🎯

Consider Your Timeline

If you're moving soon, refinancing may not be worthwhile.

🔄

Review Annually

Review refinance opportunities annually as rates change.

✅

Consult a Professional

For complex situations, consult a mortgage professional.

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FAQ

Frequently Asked Questions About Refinancing

What is mortgage refinancing?

Refinancing is the process of replacing your current mortgage with a new loan, typically to get a better interest rate or terms.

When should I refinance?

You should consider refinancing when rates are at least 0.5-1% lower than your current rate and you plan to stay in your home long enough to recoup closing costs.

What are closing costs?

Closing costs are fees associated with refinancing, including appraisal, title search, and lender fees. They typically range from 2-5% of the loan amount.

Is this Refinance Calculator free?

Yes, our Refinance Calculator is completely free. There are no subscriptions, accounts, or payment requirements.

Can I save my refinance analysis?

Yes! You can save drafts, print results, and download PDFs for your records. All data stays in your browser.

LEGAL

Legal Disclaimer

This Refinance Calculator is designed to provide approximate refinance projections for informational purposes only.

  • Not Financial Advice: This tool does not provide financial, legal, or mortgage advice.
  • Individual Results: Your actual savings may differ based on lender rates and fees.
  • Verify with Professional: Always confirm refinance decisions with a qualified mortgage professional.
⚠️ Disclaimer: This tool provides assistance with refinance calculations but does not replace professional mortgage advice.