Refinancing can be a powerful way to lower your monthly payments or reduce the total interest paid over the life of your home loan. This calculator helps you compare your current mortgage terms with a new potential loan, factoring in interest rates, loan terms, and closing costs to find your true savings.
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Mortgage Refinance Calculator
Compare your current mortgage with a new one to see if refinancing will save you money.
Current Mortgage
New Refinance Loan
Formula
Monthly Payment = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Break-Even = Closing Costs / Monthly Savings
Refinance Outcome
Monthly Savings
Closing costs can be significant (2-5% of the loan amount). Ensure you plan to stay in the home long enough to "break even" on these costs. It's a simplified comparison of principal and interest.
$505.57
Break-Even Point
9.9 months
Total Lifetime Savings
$55,466
Current Payment$2,025.62
New Payment$1,520.06
Strategic Insight
Refinancing generally makes sense if you can lower your rate by 0.75% to 1% and plan to stay in the home longer than the 9.9 month break-even period.
Pro Tip
Watch out for "no-closing-cost" refis. They often have higher interest rates. Always compare the APR (Annual Percentage Rate) which includes fees.
Is Refinancing Right for You?
Compare your current mortgage with a new loan to see if refinancing saves you money. Calculate monthly savings and break-even points. Free tools by FusioFiles.
1
Current Loan Info
Enter your remaining balance, current interest rate, and years left on the loan.
2
New Loan Terms
Enter the new interest rate and the term (e.g., 15 or 30 years) you're considering.
3
Add Closing Costs
Include the estimated fees for the refinance to see your true break-even point.
Key Features
Monthly Savings Analysis
See exactly how much your monthly payment will drop with a lower interest rate.
Break-Even Point
Calculate how many months it will take for your savings to cover the cost of refinancing.
Total Interest Comparison
Visualize the difference in total interest paid between your current loan and a new one.
Frequently Asked Questions
Closing costs generally range from 2% to 5% of the loan amount, covering appraisal, title search, and lender fees.
Generally, if you can lower your rate by at least 0.75% and plan to stay in the home longer than the break-even period.
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