Mortgage Refinance Calculator: See How Much You Could Save

Introduction

Are you considering refinancing your mortgage but unsure if it’s the right financial move? Our free Mortgage Refinance Calculator helps you determine whether refinancing makes sense for your situation. By comparing your current loan terms with potential new rates, you can estimate your monthly savings, total interest savings, and breakeven point—all in just a few clicks.

Why Use a Mortgage Refinance Calculator?

Refinancing your mortgage can save you thousands of dollars over the life of your loan, but it’s not the best choice for everyone. Key factors to consider include:

✅ Lower Interest Rates – Even a small rate reduction can lead to significant savings.
✅ Loan Term Changes – Switching from a 30-year to a 15-year mortgage can help you pay off your home faster.
✅ Closing Costs – Refinancing comes with fees, so you need to calculate how long it takes to recoup them.
✅ How Long You Plan to Stay in Your Home – If you move too soon, you might not break even on refinancing costs.

Our calculator simplifies these calculations, giving you clear insights into whether refinancing is worth it.

How the Mortgage Refinance Calculator Works

1. Savings Calculator

Enter your current loan details (balance, interest rate, and remaining term) and compare them with new loan options. The tool instantly shows:

• Monthly payment savings – How much you’ll save each month.
• Total interest savings – The difference in interest paid over the life of the loan.
• Breakeven period – How many months it will take to recover closing costs.

2. Breakeven Analysis

Wondering if refinancing is worth the upfront costs? This feature calculates:

• Months to breakeven – When your savings exceed closing costs.
• Total savings over time – Projected savings based on how long you stay in your home.
• “Does it make sense?” verdict – A clear yes/no recommendation.

3. Current Mortgage Rates

Stay updated with the latest refinance rates and compare lenders to find the best deal.

When Does Refinancing Make Sense?

Refinancing is most beneficial when:

🔹 Interest rates have dropped (at least 0.5%–1% lower than your current rate).
🔹 You plan to stay in your home long enough to recoup closing costs.
🔹 You want to switch loan terms (e.g., from a 30-year to a 15-year mortgage).
🔹 You need to remove mortgage insurance (PMI) if your home equity has increased.

Common Refinancing Mistakes to Avoid

❌ Ignoring closing costs – These can range from 2%–5% of your loan amount.
❌ Extending your loan term unnecessarily – A lower payment isn’t always better if it means paying more interest long-term.
❌ Not shopping around for lenders – Rates and fees vary, so compare multiple offers.

FAQs About Mortgage Refinancing

Q: How much does it cost to refinance?

A: Closing costs typically range from 2%–5% of your loan amount. For a $300,000 mortgage, expect to pay $6,000–$15,000 in fees.

Q: How long does the refinance process take?

A: Typically 30–45 days, depending on the lender and your financial situation.

Q: Can I refinance with bad credit?

A: It’s possible, but you may not qualify for the best rates. A credit score of 620+ is usually required for conventional loans.

Q: Should I refinance to take cash out?

A: Cash-out refinancing can be useful for home improvements or debt consolidation, but it increases your loan balance.

Try Our Free Mortgage Refinance Calculator Today

Whether you’re looking to lower monthly payments, reduce interest costs, or pay off your mortgage faster, our calculator helps you make an informed decision.

📊 Get started now and see how much you could save!