Refinance calculator
See whether a refinance makes sense: the new payment, when the savings cover the costs, and your net savings over the years you will keep the loan.
How this calculator works
It rebuilds the rest of your current loan month by month from its balance, rate and years left, builds the new loan the same way, and compares the interest and mortgage insurance you would pay on each. The refinance costs count against the new loan from day one. This is the same method your Mortgage Plan uses for a refinance.
A new 30-year term is a limit, not a schedule. A new 30-year term does not mean 30 more years of payments. It sets the longest the loan can run, not how long you have to take. Keep paying what you pay today, and the difference goes to principal, so at the lower rate the new loan can be paid off on or before the date your current loan would end. "Keep today's payment" sets that extra principal for you, and "Match the current payoff" sets the extra that ends the new loan when your current one would end.
For the reasoning behind it, see will it pay off? If you want cash out, first compare it with a second mortgage in cash-out or a second mortgage.
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Loans it explains
Common questions
How do I know if refinancing is worth it?
Start with the break-even point, which is how long it takes for your savings to cover the cost of the refinance. If you will keep the loan longer than that, the refinance likely pays off. This calculator also shows net savings at 3, 5, 7 and 10 years.
Does a new 30-year loan mean 30 more years of payments?
No. A 30-year term is the longest the loan can run, not how long you have to take. Keep paying what you pay today, and the difference goes to principal: at the lower rate, the new loan can be paid off on or before the date your current loan would end. Tap "Keep today's payment" in the calculator to see the date on your numbers.
Why does a lower payment sometimes cost more?
If you pay only the new, lower payment for the whole new term, you may pay interest for more years. Paying your old amount, or a shorter term, avoids that. The calculator shows the interest left to pay on both loans.
Should I roll the closing costs into the loan?
Adding them to the loan means you do not pay them in cash at closing, but you pay interest on them. The calculator counts the costs either way, so you can compare fairly.
I have an FHA or VA loan. Is there a less expensive option?
There often is. FHA Streamline and VA IRRRL refinances can skip the appraisal and much of the paperwork. See streamline refinances.
See it with your own numbers
Daniel builds your Mortgage Plan from what you tell him: every loan option that fits, side by side.