Refinance Calculator

Refinance Calculator – Find Out How Much You Can Save on Your Mortgage

If you’re a homeowner in the United States thinking about refinancing your mortgage, our Refinance Calculator can help you make a smart decision. Refinancing can lower your monthly payments, reduce your interest rate, or even shorten your loan term — but it’s not always the right choice for everyone. With this free tool, you can instantly compare your current mortgage with a new refinance loan, calculate your monthly savings, estimate your total lifetime savings, and find your break-even point after accounting for closing costs.

This calculator is designed specifically for U.S. homeowners who want a clear, accurate picture before applying for a refinance loan.

What is Mortgage Refinancing?

Mortgage refinancing is the process of replacing your current home loan with a new one. The new loan usually comes with a different interest rate, loan term, or loan amount. Homeowners often refinance to:

• Get a lower mortgage rate.
• Reduce monthly payments.
• Switch from a 30-year to a 15-year mortgage to pay off the loan faster.
• Tap into home equity with a cash-out refinance.
• Consolidate high-interest debt into a lower-interest mortgage.

But refinancing isn’t free — you’ll need to pay closing costs, usually 2% to 5% of the loan amount. That’s why it’s important to use a refinance calculator to see whether the long-term savings outweigh the upfront costs.

How to Use Our Refinance Calculator

Our refinance mortgage calculator is simple to use. Just enter your current loan details and the terms of your new refinance loan:

1. Current Loan Balance – How much you still owe on your mortgage.
2. Current Interest Rate – Your current mortgage rate.
3. Remaining Loan Term – How many years are left on your existing loan.
4. New Loan Amount – The balance of your new loan (may include closing costs).
5. New Interest Rate – The refinance rate you’re being offered.
6. New Loan Term – Length of the new mortgage (e.g., 15 years, 30 years).
7. Closing Costs – Fees required to refinance your mortgage.

Once you enter your information, the calculator shows:

• Current monthly mortgage payment.
• New monthly payment after refinancing.
• Monthly savings or increase.
• Total lifetime savings.
• Break-even point (how long it takes to recover closing costs).
• A comparison chart of your current vs new loan.

This gives you a clear picture of whether refinancing makes financial sense.

Example: Refinancing in Action

Imagine you have:

• A $250,000 balance left on your mortgage.
• 25 years remaining.
• A 6.5% interest rate.

Your current monthly payment would be around $1,684.

Now let’s say you refinance into a new 30-year loan at a 5.5% interest rate with $4,000 closing costs.

• Your new monthly payment drops to $1,419.
• You save $265 per month.
• Your break-even point is around 15 months.
• Your total lifetime savings could exceed $20,000.

This is the kind of insight our refinance calculator gives you instantly.

Why Refinance Your Mortgage?

Here are the most common reasons U.S. homeowners use a mortgage refinance calculator before applying:

• Lower Interest Rate – Even a 1% rate drop can save thousands over the life of the loan.
• Lower Monthly Payments – Refinancing can make your mortgage more affordable.
• Shorter Loan Term – Switch to a 15-year loan and build equity faster.
• Cash-Out Refinance – Borrow against your home’s equity for renovations, tuition, or debt payoff.
• Switch Loan Types – Move from an ARM (Adjustable-Rate Mortgage) to a fixed-rate mortgage for stability.

Refinance Pros and Cons

Benefits of Refinancing

• Lower monthly payments.
• Save thousands in interest.
• Pay off mortgage faster with a shorter term.
• Consolidate debts into one payment.
• Access home equity through cash-out refinance.

Drawbacks of Refinancing

• Closing costs can be high.
• Extending loan term may mean paying more over time.
• Break-even point may take several years.
• Not ideal if you plan to sell your home soon.

When Should You Refinance?

Refinancing makes the most sense when:

• Interest rates have dropped at least 1% below your current rate.
• You plan to stay in your home long enough to break even on closing costs.
• You want to reduce monthly payments to free up cash.
• You want to switch from an ARM to a fixed-rate loan.
• You want to pay off your mortgage faster with a shorter term.

If you only plan to stay in your home for a few more years, refinancing might not be worth the cost. Our refinance calculator helps you make that decision confidently.

Key Features of Our Free Refinance Calculator

• Easy-to-use interface.
• Accurate mortgage math.
• Instant results with monthly savings breakdown.
• Closing cost impact included.
• Break-even point clearly shown.
• Interactive chart comparing current vs new loan.
• 100% free, no sign-up required.

Refinance Calculator FAQs

1. How accurate is this refinance calculator?
Our refinance mortgage calculator uses industry-standard formulas to give accurate estimates. Your actual savings may differ slightly depending on lender fees, insurance, and taxes.

2. What are typical refinance closing costs?
Most homeowners pay 2% to 5% of the loan amount in closing costs. For a $250,000 loan, that’s $5,000–$12,500.

3. How do I know if refinancing is worth it?
Check your break-even point. If you’ll save more over time than you’ll pay in closing costs, refinancing is worth considering.

4. Can I refinance with bad credit?
Yes, but you may not get the best interest rates. Improving your credit score before refinancing can save you thousands.

5. Should I refinance to a 15-year mortgage?
If you can afford higher monthly payments, a 15-year loan saves you significant interest and helps you build equity faster.

6. Can I roll closing costs into my refinance loan?
Yes. Many homeowners choose to include closing costs in their new loan balance. Our calculator allows you to see how that affects total savings.

If you looking to buy your first home and want to calculate your Mortgage, then visit our Mortgage Calculator page.