Common question
What would my refinance payment be?
A refinance payment is a new principal-and-interest payment on the balance you still owe, at the rate and term you enter. It does not include taxes or insurance. Those bills stay either way.
A lower payment is not the same as paying less interest. A longer term can cut the monthly number and still cost more over the life of the loan. The result is an estimate from the numbers you enter, not a refinance offer.
About $282.45 per month.
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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.
How the estimate is calculated
The current payment uses the balance, the current rate, and the years still left. The new payment uses the same balance, unless you add closing costs into the loan, at the new rate and the new term.
Monthly savings are the old payment minus the new one. If you pay closing costs upfront and the new payment is lower, break-even is those costs divided by the monthly savings. If you roll the costs into the loan, the page does not quote a cash break-even, because you did not pay that cash upfront.
Open the Refinance Calculator · How this calculator works
Questions
Which term should I use for the current loan?
The years still remaining. A loan that started at 30 years and is three years old is not a 30-year comparison.
Why can the payment fall while interest rises?
Stretching the remaining balance over more years lowers the payment and can increase the interest you still owe.
Does this include escrow?
No. Both payments are principal and interest only. A refinance does not remove property tax or insurance.
Is the break-even a guarantee?
No. It is closing costs you enter divided by the monthly savings on these inputs. A later rate or a fee you left out changes it.