Mortgage Refinance Calculator
Calculate potential savings from refinancing and find your break-even point.
Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.
People Also Ask
Should I refinance my mortgage?
Common factors in refinancing decisions include rate reduction potential (0.5-1%+ lower), how long you plan to stay versus break-even time, and desired loan term changes. This calculator helps analyze your specific situation.
What is a good reason to refinance?
Common reasons: lower interest rate, shorter term, switching from ARM to fixed, cash-out for home improvements, or removing PMI. Note that extending loan terms to lower payments increases total interest paid over time.
How much will refinancing save me?
Savings depend on rate reduction, remaining term, and closing costs. A 1% rate reduction on $300,000 saves roughly $200/month. This calculator shows your exact savings after accounting for costs.
What is the break-even point for refinancing?
Break-even is when monthly savings exceed closing costs. If refinancing costs $6,000 and saves $200/month, break-even is 30 months. Refinancing typically makes financial sense when staying past the break-even point.
What costs are involved in refinancing?
Typical costs: 2-5% of loan amount. Includes appraisal ($300-500), title insurance, origination fees, and closing costs. Some lenders offer no-closing-cost options with slightly higher rates.
Is it worth refinancing for 0.5% lower rate?
It depends on loan balance and how long you'll stay. On a $300,000 loan, 0.5% saves about $100/month. With $6,000 in costs, you break even in 5 years.
Can I refinance with bad credit?
Yes, but rates will be higher. FHA streamline refinance has lenient requirements. Generally, credit scores above 620 qualify for conventional refinance, but better scores get better rates.