Refinance Calculator
Compare the principal and interest you pay now with a new rate and term. Closing costs are included in the break-even.
Use it when you have the current loan and a new rate, and you want the monthly change and a break-even.
What would my refinance payment be?
Compare scenarios
How we calculated this
Both payments are principal and interest only. Break-even is upfront closing costs divided by the monthly savings. Interest difference compares the remaining interest on the current schedule with interest on the new loan.
What does this mean?
The new loan payment is about $282.45 lower each month. Upfront costs are covered in about 22 months of savings.
Your assumptions
Edit assumptions- Balance
- $320,000
- Current rate
- 7.00%
- New rate
- 6.00%
- New term
- 30 years
- Closing costs
- $6,000
- How costs are paid
- Paid upfront
This calculator provides an estimate for informational purposes. Actual mortgage payments, taxes, insurance, PMI, fees, and lender terms may vary.
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How the estimate is calculated
Both payments are principal and interest on the balance you enter. The current term is the years you believe are left, not the original term.
If you pay closing costs upfront, break-even is those costs divided by the monthly savings. A longer new term can lower the payment and still raise total interest.
Break-even
Months to break even equal upfront closing costs divided by the monthly payment reduction. Interest difference compares remaining interest on the two schedules.
Example
- Use the balance and rate from the statement.
- Enter years left, not the original 30 if you are several years in.
- Put the quoted rate, term, and closing costs on the new loan.
With the numbers filled in on this page, the estimate is $282.45 per month.
What changes the result
Term reset
Starting a new 30-year clock can cut the payment and increase the interest you still owe.
Financed costs
Adding closing costs to the loan removes a simple cash break-even and raises the new balance.
Escrow
Taxes and insurance are not in either payment. A refinance does not remove them.
Questions
What term should I use for the current loan?
The years still remaining. A loan that started as 30 years and is 3 years old is not a 30-year comparison.
Why can savings and interest disagree?
A lower monthly payment stretched over more years can cost more interest in total.
Is this a refinance offer?
No. It is arithmetic on the numbers you enter.