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Mortgage Refinance Calculator

Determine if refinancing makes financial sense for you. Calculate your break-even point, monthly savings, and lifetime interest savings with our comprehensive refinance analysis.

Loan Details

Current Mortgage

$
%

25 years, 0 months

New Mortgage

%
$

Typically 2-5% of loan amount ($$6,000 - $$15,000)

$

Extra cash you want to take out from home equity

Analysis Results

Refinancing Recommended

You'll break even in 1.3 years and save $322/month.

Monthly Payment

Current

$2,026

New

$1,703

Save: $322/month

Interest Rate

Current

6.50%

New

5.50%

Decrease: 1.00%

Break-Even Point

16 months

(1.3 years)

Upfront Cost

$5,000

Due at closing

First Year Savings

-$1,133

After closing costs

Lifetime Interest Savings

-$10,526

If you stay for full 30-year term

Loan Details

New Loan Amount:$300,000
Current Total Interest:$307,686
New Total Interest:$313,212

⚠️ Important Considerations

When Refinancing Makes Sense

  • ✓ Rate reduction of 0.75% or more
  • ✓ Planning to stay 5+ years (or past break-even)
  • ✓ Can afford closing costs
  • ✓ Credit score has improved significantly
  • ✓ Need to access home equity for improvements

Warning Signs

  • ⚠️ Breaking even takes more than 5 years
  • ⚠️ Planning to sell or move soon
  • ⚠️ Extending loan term significantly
  • ⚠️ Cash-out reduces equity below 20%
  • ⚠️ Cannot afford upfront costs

Refinancing Tips

📋 Preparation

  • • Check credit score (aim for 760+)
  • • Gather financial documents
  • • Get home appraised if needed
  • • Review current mortgage terms

💰 Cost Reduction

  • • Shop multiple lenders (3-5 quotes)
  • • Negotiate closing costs
  • • Consider no-closing-cost options
  • • Ask about lender credits

⏰ Timing

  • • Lock rate when satisfied
  • • Allow 30-45 days for closing
  • • Avoid month-end closings
  • • Consider rate trends