Refinance Calculator
Use our refinance calculator to quickly estimate your potential savings and new monthly payment. Input your current loan details, desired new terms, and closing costs to get a clear picture of how refinancing could impact your finances over the life of your loan.
Monthly Savings
$0.00New Monthly Payment
$0.00Lifetime Savings
$0.00Based on your inputs, you might qualify for competitive refinance rates.
Check current refinance ratesIs Refinancing Right for You?
Thinking about refinancing your mortgage? You’re in the right place! Our Refinance Calculator is the cheat code for making smart decisions about your home loan.
How Our Refinance Calculator Works for You
This user-friendly calculator is designed to compare your current mortgage with potential refinancing options. By entering a few key details, you’ll quickly see how refinancing could impact your financial future.
What You’ll Need to Get Started
- Current Loan Balance: The amount you still owe on your mortgage
- Current Interest Rate: Your existing loan’s interest rate
- Current Loan Term Remaining: Years left on your current mortgage
- New Interest Rate: The rate offered for the refinanced loan
- New Loan Term: Length of the new loan in years
- Closing Costs: Fees associated with refinancing
Ready to Calculate? Here’s How to Get the Most Accurate Results
Grab your current mortgage statement for accurate loan balance and interest rate
Research current refinancing rates from various lenders
Enter the data into the calculator above
Carefully review the results, focusing on monthly savings, new payment, and lifetime savings
Follow These Steps:
What Your Results Mean: Breaking Down the Numbers
After using the calculator, you’ll see three key pieces of information:
- Monthly Savings: The reduction in your monthly payment
- New Monthly Payment: Your revised mortgage payment after refinancing
- Lifetime Savings: The total amount you’ll save over the entire loan term
Let’s look at an example to see how this works in practice:
Refinancing Scenario
Current Loan: $200,000 at 4.5% interest for 25 years
Refinance Option: 3.5% interest for 30 years with $3,000 in closing costs
Results:
- Monthly Savings: $200.10
- New Monthly Payment: $911.56
- Lifetime Savings: $5,337.63
While the lower monthly payment provides immediate cash flow relief, remember that extending your loan term means being in debt longer. Consider this trade-off against your financial goals.
Is Now the Right Time for You to Refinance?
Refinancing can be a smart move in several situations. Consider refinancing if:
Interest rates have dropped significantly since you got your original loan
Your credit score has improved, potentially qualifying you for better rates
You want to switch from an adjustable-rate to a fixed-rate mortgage
You need to lower your monthly payments to improve cash flow
Refinancing Might Be Right If:
Caution:
Refinancing isn’t always the best choice. If you plan to move soon or if the closing costs outweigh the potential savings, it might be better to stick with your current loan.
How to Maximize Your Refinancing Benefits
Shop around for the best rates and terms from multiple lenders
Consider a shorter loan term if you can afford higher monthly payments
Look for opportunities to negotiate closing costs
Time your refinance when interest rates are at their lowest
Refinancing Tips:
Your Broader Financial Picture
While our Refinance Calculator is a powerful tool, it’s just one part of your financial planning toolkit.
Consider consulting with a financial advisor to understand how refinancing fits into your broader financial picture. They can help you weigh the pros and cons based on your unique situation and goals.
Ready to Explore Your Refinancing Options?
Now that you understand how to use the Refinance Calculator, it’s time to put it to work for you. Input your current loan details above and explore various refinancing scenarios. Try different interest rates and loan terms to see how they affect your potential savings.
Remember:
Knowledge is power when it comes to your finances. By using this calculator, you’re taking an important step towards potentially saving thousands of dollars and securing a brighter financial future.
