Refinance Calculator

Major benefits of refinancing your home include lowering your interest rate, reducing your monthly mortgage payment, or swapping out your loan term. You should add data to as many fields as possible for the most precise calculation.

Current Loan
New Loan

 

 

Current Loan

 

New Loan

 

Payment Savings

 

 

  Total Interest Savings:  
Through year  
Current Loan New Loan Interest Savings
Total interest payments   -   =  
Interest remaining    
Principal balance    

Total Savings

( )
 

Connect with a Mortgage Advisor Today!

Whether you’re buying a home or ready to refinance, our professionals can help.

Common Refinance Calculator Terms

Gather the same information from when you originally financed your home, add the data from the current state of your loan, and consider what is likely to change (loan term, interest rate) to have everything you need to use the refinance calculator.

Current Principal & Interest Payment

Your amortization schedule (available from your current lender) will show how much principal is left and how your monthly payment is allocated.

Balance Left

The balance left on your loan is the principal only. It's approximately what the payoff for your loan would be if you paid it off today.

Cash-out Amount

The equity you've built up in your home has a monetary value, which you can cash out when you refinance.

Closing Costs

Refinancing means you'll have closing costs to close your new loan. Usually, these aren't as high as for the original purchase.

Break-even Point

The break-even point is the date when the savings you have realized from your refinance overtake the cost of refinancing.

Interest Remaining

The interest remaining on your loan is based on your amortization schedule and can change if you make extra principal payments.

Principal Balance

The principal balance is what will be paid off when you refinance, and your new mortgage will add any cashout to create a new balance.

Payment Savings

The calculator can show you the estimated payment savings you'll receive monthly if you refinance for a longer term.

FAQs

What does “refinancing a mortgage” mean?

Refinancing means replacing your current home loan with a new one—usually with a different interest rate, loan term, or payment structure. Many homeowners refinance to lower their monthly payment, switch to a shorter loan term, or change from an adjustable rate to a fixed rate.

What does the refinance calculator do?

This tool estimates how much you might save by refinancing. It compares your existing payment with a new payment based on the refinance rate and terms you enter. It also shows how changes in interest rate, loan amount, and term affect your monthly cost and total loan expense over time.

Why might someone choose to refinance?

People refinance for many reasons, including lowering their monthly payment, reducing the total interest paid over the life of the loan, accessing home equity for cash needs, or switching to a loan structure that better fits their financial goals.

What inputs does the calculator need?

To estimate costs and savings, the calculator typically asks for your current loan balance, existing interest rate, proposed new interest rate, new loan term, and any estimated refinance costs. Accurate information helps generate more meaningful estimates.

Does this tool include closing costs?

The refinance calculator allows you to enter an estimate of closing costs so that your savings calculation reflects the impact of those fees. If you leave costs blank or estimate them too low, your results may overstate your potential benefit.

Can the calculator predict exact savings?

No. The results are estimates that help you evaluate whether refinancing might be beneficial. Actual savings depend on your final loan offer, market conditions, fees, and how long you keep the new mortgage. Always consult a loan officer for precise numbers.

How often should I check refinance options?

Because mortgage rates and loan programs change over time, it can be helpful to re-evaluate your refinance options periodically—especially if rates drop or your financial goals change. A small shift in rate can sometimes make refinancing more attractive.

Compare Mortgage Rates in Your Area Instantly

No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.

Subscribe to our newsletter