Refinance Calculator
Use this calculator to determine if refinancing your mortgage makes financial sense. Compare your current loan with a new loan to see potential savings in monthly payments and total interest costs.
Refinance Summary
Enter your current and new loan details to see if refinancing makes sense.
About the Refinance Calculator
This refinance calculator helps you determine whether refinancing your mortgage could save you money. By comparing your current mortgage with a potential new loan, you can see the potential monthly savings, total interest savings, and how long it would take to break even on the closing costs.
How to Use This Calculator
1. Current Loan Details: Enter your remaining loan balance, the number of years left on your current mortgage, and your current interest rate.
2. New Loan Details: Enter the amount you want to refinance, the new loan term, and the new interest rate you qualify for.
3. Refinance Costs: Include any closing costs associated with the new loan and how many years you plan to stay in the home.
4. Tax Rate: Enter your marginal tax rate to calculate the tax-deductible portion of mortgage interest.
Understanding the Results
The calculator provides a detailed comparison between your current loan and the new loan, showing:
- Monthly Payment: The difference in your monthly mortgage payment
- Total Interest: The total interest you'll pay over the life of each loan
- Break-even Point: How many months it will take to recover the closing costs through monthly savings
- Net Savings: The total savings after accounting for closing costs during your planned time in the home