Free Mortgage Refinance Calculator - Calculate Refinancing Savings

Calculate if refinancing your mortgage makes sense. Free refinance calculator with break-even analysis, monthly savings, and total cost comparison. No registration required.

How to Use Our Refinance Calculator

1. Enter your current mortgage balance
2. Input your current interest rate
3. Set your remaining loan term
4. Enter the new interest rate you're considering
5. Choose your new loan term
6. Add closing costs and fees
7. Calculate to see your potential savings and break-even point

Understanding Mortgage Refinancing

When to Refinance

Refinancing makes sense when you can get a lower interest rate, want to change your loan term, or need to access home equity. The key is ensuring the savings outweigh the costs.

Break-Even Analysis

The break-even point is when your monthly savings equal the closing costs. This tells you how long it takes to recover your refinancing expenses.

Interest Rate Reduction

Even a small reduction in interest rate can save thousands over the life of your loan. A 0.5% rate reduction on a $300,000 loan can save over $30,000 in interest.

Loan Term Changes

Refinancing can help you pay off your mortgage faster or reduce monthly payments by extending the term. Consider both the monthly impact and total interest paid.

Refinancing Scenarios

Rate and Term Refinance

Lower your interest rate and/or change your loan term. This is the most common type of refinance and typically offers the best savings potential.

Cash-Out Refinance

Borrow more than your current balance to access home equity. Use the extra cash for home improvements, debt consolidation, or other financial goals.

Streamline Refinance

Simplified refinancing for government-backed loans (FHA, VA, USDA) with reduced documentation and lower closing costs.

Refinancing Costs to Consider

Closing Costs

Typically 2-5% of your loan amount, including origination fees, appraisal, title insurance, and other lender fees.

Prepayment Penalties

Some loans have penalties for paying off early. Check your current loan terms before refinancing.

Points and Fees

You may pay points to buy down your interest rate. Calculate if the upfront cost is worth the long-term savings.

Refinancing Tips

Shop Around

Compare rates and fees from multiple lenders. Even small differences can significantly impact your savings.

Consider Your Timeline

If you plan to move soon, refinancing may not make sense due to closing costs. Calculate your break-even point carefully.

Improve Your Credit

Better credit scores qualify for better rates. Consider improving your credit before refinancing if possible.

Lock Your Rate

Interest rates can change daily. Lock in your rate when you find a good deal to protect against rate increases.

Frequently Asked Questions

How much can I save by refinancing?

Savings depend on your current rate, new rate, loan balance, and closing costs. Our calculator helps you determine if refinancing makes financial sense.

What is a good interest rate for refinancing?

Generally, you should consider refinancing if you can get a rate at least 0.5% lower than your current rate, but closing costs and your timeline matter too.

How long does the refinancing process take?

Refinancing typically takes 30-45 days, similar to a purchase loan. The process includes application, appraisal, underwriting, and closing.

Can I refinance if I have an FHA or VA loan?

Yes, government-backed loans offer streamline refinancing options with reduced documentation and lower costs, making refinancing more accessible.