EstatePass
Free Calculator

Refinance Calculator

Should you refinance your mortgage? Compare your current loan with refinance options to see monthly savings, break-even point, and total interest savings.

Current Loan
Your existing mortgage
New Loan
Refinance options
10 years30 years

Typically 2-5% of loan amount

Refinancing Recommended

Worth considering - reasonable break-even period

Monthly Savings

+$284

Break-Even

2.4 yrs

Rate Drop

1.00%

Lifetime Savings

$11,114

Loan Comparison
Current vs. New Loan Details

CURRENT

NEW

Loan Amount
$320,000
$320,000
Interest Rate
7.5%
6.5%
Term Remaining
27 years
30 years
Monthly Payment
$2,306
$2,023
Total Payments
$747,257
$728,142
Total Interest
$427,257
$408,142
Savings Analysis
Monthly Payment DifferenceSave $284/mo
Upfront Cost-$8,000
Break-Even Point29 months (2.4 years)

Savings Over Time

After 2 years:-$1,190
After 5 years:$9,024
After 10 years:$26,048
Lifetime Interest Savings$11,114

Understanding Refinancing

Common questions about mortgage refinancing

Refinancing Tips
  • 1.Shop around - get quotes from at least 3 lenders
  • 2.Improve your credit score before applying
  • 3.Ask about "no-closing-cost" options (higher rate)
  • 4.Consider points if you'll stay long-term
  • 5.Don't reset to 30 years if you've paid years already
  • 6.Factor in all closing costs, not just the rate
  • 7.Lock your rate once you're happy with the terms
  • 8.Review your loan estimate carefully

How It Works

1. Enter Current Loan

Input your existing loan balance, interest rate, and remaining term to establish your baseline.

2. Add New Loan Terms

Enter the proposed new interest rate, loan term, closing costs, and any cash-out amount.

3. Get Your Analysis

See monthly savings, break-even point, lifetime savings, and a clear recommendation on whether to refinance.

Frequently Asked Questions

The Smart Way to Evaluate Mortgage Refinancing

Refinancing your mortgage can save thousands of dollars over the life of your loan, but only if done at the right time and for the right reasons. Our free refinance calculator helps you cut through the complexity by showing exactly how much you'll save monthly, how long it takes to recoup closing costs, and whether refinancing makes financial sense for your situation.

Understanding Your Refinance Options

When mortgage rates drop, refinancing becomes an attractive option for homeowners. But the decision isn't just about the rate. You need to consider closing costs, how long you'll stay in the home, and whether extending your loan term is worth the lower monthly payment. A 30-year refinance on a mortgage you've been paying for 10 years resets the clock, potentially costing more in total interest despite a lower rate.

Beyond Rate Shopping: The Complete Picture

The best refinance decision considers your complete financial picture. Are you planning to stay long enough to reach break-even? Would a shorter term help you pay off your home before retirement? Could a cash-out refinance fund home improvements that increase property value? Use this calculator as a starting point, then consult with a mortgage professional to explore your specific options.