Refinance
Compare your current loan to a new rate and see how long it takes to earn back the closing costs.
Mortgage refinance calculator: compare before you replace your loan
This mortgage refinance calculator compares principal and interest on your current balance with a replacement loan for the same balance. Enter your current rate, years remaining, proposed rate, new term and closing costs. The result estimates monthly savings and how long it takes to recover those costs; it is not a loan offer or approval.
A smaller payment does not always mean a cheaper loan. Restarting at 30 years can lower the payment while increasing total interest. Also compare a term close to your remaining term and consider how long you expect to keep the loan.
Property taxes, homeowners insurance, mortgage insurance and HOA dues are not included in this principal-and-interest comparison. The tool treats closing costs as a separate expense, not an addition to the financed balance. Financing costs or taking cash out requires a comparison using the actual new loan amount.
Before you calculate
- Find your balance and rate on your mortgage statement. Use the years remaining, not the original loan term.
- Enter a proposed rate and new term. An example interest rate is not APR or a guaranteed rate.
- Check costs against a Loan Estimate. Separate loan fees from prepaids and escrow deposits.
- Compare monthly savings, break-even and remaining interest; then review the full payment and actual new balance with your loan officer.
| Item | Example |
|---|---|
| Refinance costs | $6,000 |
| Assumed monthly savings | $250 |
| Calculation | $6,000 ÷ $250 = 24 |
| Time to recover costs | 24 months |
What does a mortgage refinance calculator show?
It estimates principal and interest before and after refinancing, monthly savings and break-even time. This tool compares the same balance at different rates and terms. It excludes taxes, insurance and HOA dues and does not determine eligibility. For cash-out or financed costs, review the new balance and full expenses.
Can I use a mortgage payment calculator for a refinance?
You can estimate a payment on a proposed balance, but that alone does not show whether replacing your current loan is worthwhile. A refinance calculator adds the comparison with your remaining term and closing costs. For a purchase, use the home price and down payment in the payment calculator; for refinancing, start with your outstanding balance.
How do I calculate refinance break-even?
Divide costs by monthly savings: $6,000 ÷ $250 = 24 months. Selling or refinancing again sooner may leave costs unrecovered. With no positive monthly savings, there is no payment-savings break-even. This simple calculation excludes the time value of money and differences in equity built through principal payments.
Is a no-closing-cost refinance really free?
Not necessarily. A lender credit may cover certain costs in exchange for a higher rate, or some costs may be added to the balance. Compare cash at closing, loan amount, rate, APR and costs over the time you expect to keep the loan. An escrow deposit is not the same as a lender fee.