Refinance Calculator
Should you refinance? Compare your current mortgage with a new one to see if refinancing makes financial sense.
Current Mortgage
New Mortgage
Current Mortgage
New Mortgage
When to Consider Refinancing
Refinancing replaces your existing mortgage with a new one, ideally at a lower rate. The key factors are the rate difference, closing costs, and how long you plan to stay in the home. This calculator helps you determine if refinancing makes financial sense.
Frequently Asked Questions
When should I refinance my mortgage?
Consider refinancing when rates are at least 0.75-1% lower than your current rate, you plan to stay in the home long enough to recoup closing costs, and your credit score qualifies for the best rates.
What are typical refinancing closing costs?
Closing costs for refinancing typically range from 2-5% of the loan amount. For a $250,000 loan, that is $5,000-$12,500. These can include appraisal fees, title insurance, origination fees, and other charges.
How long does it take to break even on a refinance?
Break-even time is calculated by dividing closing costs by monthly savings. For example, $5,000 in costs with $200/month savings takes 25 months to break even. If you plan to stay longer, refinancing makes sense.
Should I refinance to a shorter term?
Refinancing from a 30-year to a 15-year mortgage increases monthly payments but dramatically reduces total interest paid. This is a good option if you can afford the higher payment and want to build equity faster.
Disclaimer
This calculator is for informational purposes only and should not be considered financial advice. Consult with a qualified financial professional before making any financial decisions.