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
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. Formula: Payment = P*r*(1+r)^n/((1+r)^n-1); Savings = P1-P2; Break-even = costs / savings
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 $1,979.
See if refinancing saves money: compare current vs new mortgage payment, monthly savings and break-even months after closing costs. Formula: Payment = P*r*(1+r)^n/((1+r)^n-1); Savings = P1-P2; Break-even = costs / savings
| Field | What to enter |
|---|---|
| Remaining balance ($) | e.g. 280000 |
| Current rate (%) | e.g. 7.0 |
| Remaining years | e.g. 25 |
| New rate (%) | e.g. 6.0 |
| New term (years) | e.g. 30 |
| Closing costs ($) | e.g. 4000 |
All fields use the exact formulas shown below — results include step-by-step breakdowns you can verify by hand.
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