See if refinancing saves money: compare current vs new mortgage payment, monthly savings and break-even months after closing costs.
See if refinancing saves money: compare current vs new mortgage payment, monthly savings and break-even months after closing costs.
Enter values above and click Calculate — results will appear here with the formula explained.
This compares your current remaining mortgage payment to a new mortgage for the same balance but new rate and term, assuming you refinance the full remaining balance and roll costs separately. Monthly savings is current payment minus new payment; break-even is closing costs divided by monthly savings.
A longer new term lowers payment but may increase total interest — check total cost, not just payment. It assumes no cash-out and constant rates.
Break-even is costs divided by monthly savings, but true savings include remaining interest. Use CFPB refinance checklist: compare APR, not just rate, and ensure you will stay beyond break-even. Closing costs can be rolled into loan but then accrue interest — this model treats them as cash, more conservative.
Advertisement
AdSense ready — add NEXT_PUBLIC_GOOGLE_ADSENSE_PUBLISHER_ID
Mortgage Refinance Calculator computes see if refinancing saves money: compare current vs new mortgage payment, monthly savings and break-even months after closing costs. Formula: Payment = P*r*(1+r)^n/((1+r)^n-1). Example: With $280k balance, 7% for 25y left, payment about $1,979.
This compares your current remaining mortgage payment to a new mortgage for the same balance but new rate and term, assuming you refinance the full remaining balance and roll costs separately. Monthly savings is current payment minus new payment; break-even is closing costs divided by monthly savings.
A longer new term lowers payment but may increase total interest — check total cost, not just payment. It assumes no cash-out and constant rates.
Break-even is costs divided by monthly savings, but true savings include remaining interest. Use CFPB refinance checklist: compare APR, not just rate, and ensure you will stay beyond break-even. Closing costs can be rolled into loan but then accrue interest — this model treats them as cash, more conservative.
Advertisement
AdSense ready — add NEXT_PUBLIC_GOOGLE_ADSENSE_PUBLISHER_ID
With $280k balance, 7% for 25y left, payment about $1,979. Refinancing to 6% for 30y: payment about $1,679, saving $300/mo. With $4k costs, break-even in about 13 months.
Advertisement
AdSense ready — add NEXT_PUBLIC_GOOGLE_ADSENSE_PUBLISHER_ID