Refinance Calculator

Refinance Calculator

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Should I Refinance Now? Our mortgage refinance calculator tells if you'll save money, lower your payments & save on interest & fees. Simply enter information like principal loan balance, and current payment and interest rates to find out if refinancing is the right thing to do now.

This mortgage refinancing calculator tool compares your existing mortgage against terms of a new loan. To make the most of this calculator, you should have actual mortgage quotes to compare against.  You can request up to four free quotes through our free matching service to see what refinance rates are available to you in order to find the best refinance rates.

Mortgage Refinance Calculator
Enter the Values for the Comparison You Wish to Make
Input Values
Existing Loan
Original Amount of Current Mortgage
Interest Rate (APR) of Current Mortgage
Total Length of the Current Loan
Loan Start Date
Remaining Principal on the Current Loan
New Loan
Interest Rate of Refinance Loan
Term Length of the Refinance Loan
If taking "Cash out," enter the amount
Closing Costs
$   The refinance calculator displays an estimated amount of closing costs (2% of remaining principal)
Closing Costs Will Be...
Paid by Cash or Check
Rolled into the Loan
Paid by Lender
(Yield Spread Points)
* Do not include any escrow contributions, prepaid interest, prepaid taxes, insurance (other than title insurance), or other "prepaids" as closing costs.

How to use the Refinance calculator

When using a refinance calculator, you'll be asked to enter the following information for your current mortgage loan:

  • The original loan amount
  • Interest rate (APR)
  • Total length (repayment term): mortgage loans usually have repayment terms of 15 or 30 years.
  • Time remaining : If you have a 30 year loan, and have made payments for five years, the time remaining would be 25 years
  • Remaining principle on current loan: This is your present mortgage balance. Your monthly mortgage statement should show this information.

Now you'll enter the refinancing terms you're considering:

  • Amount refinanced: This is the amount you want to borrow for your new mortgage.
  • Interest rate of new mortgage: Enter the interest rate for the new mortgage
  • Term length : Enter how long you'll have to repay the new loan. (Typically 15 or 30 years for mortgage refinancing loans).
  • Cash out amount, if any: Enter any additional cash you're taking out, for debt consolidation / payoff, home improvement, vacations, medical expenses or whatever.
  • Closing costs, discount points, down payment amount: The refinance calculator displays an estimated amount of closing costs, not including discount points, on the next screen. You can use this estimate if you don't know the amount of closing costs.

Use the drop-down window to select the appropriate option for paying closing costs:

  • Paid by cash or check: You're contributing funds to cover closing costs
  • Rolled into the loan: Your refinanced mortgage amount will include closing costs.
  • Paid by Lender: Your mortgage lender pays the closing costs (but you'll pay a slightly higher interest rate).

After clicking the "calculate" button, the first section of the next screen displays a comparison of your current and proposed mortgage amounts, interest rates, and if applicable, any cash out amount and closing costs for the new mortgage.

The next section compares the interest you'll pay for the full term of your existing loan and for the new loan.

The third section of the screen shows your current monthly payment compared to the estimated monthly payment after refinancing. Finally, the calculator indicates the net estimated savings after payment of closing costs (if applicable.) This is the "bottom line" figure that can help you decide whether or not to refinance. You can use the refinance and comparison calculators for reviewing multiple refinancing options.

Once you've tested different rates and figures, try comparing the lowest rates offered by mortgage refinancing lenders. There results are tailored to you, and there's no obligation for seeing if you qualify for a refinancing rate lower than your current rate. With lenders competing to offer you their lowest rates, you could end up saving thousands over the course of your loan!

13 Responses to "Refinance Calculator"
  1. s2kreno 04, Dec, 2008

    This calculator takes into account payments already made and the fact that stretching out a balance may lower payments but increase overall interest expense. very thorough and more accurate than most.

  2. Shannon 25, Sep, 2008

    Is it possible to refinance a VA Loan that I have had only 4 months. My current rate is 7.5% Is the IRRL a possibility? Will it make a considerably difference in my monthly payment? - - - - EDITOR'S REPLY: It may be beneficial to seek an IRRRL (an Interest Rate Reduction Refinance Loan, often referred to as a Streamline Refi). Whether or not the math works depends on whether you have a fixed rate or ARM currently and what your credit looks like, but it's probably a good idea to explore your refinancing options. In fact, some IRRLs are available with little to no out-of-pocket expense. Get quotes from a few VA lenders to see which one offers the lowest rate with no out of pocket expenses, then get a quote from your current lender, who might be willing to give you a better rate than you have now. Staying with your current lender eases the refi process, and may be best if their rate is comparable to the other lenders. If you do have money to invest in closing costs, and are willing to pay for a lower rate, use the refinance calculator to determine how many months it will take before you recoup your closing costs in monthly savings and make sure there is little chance of you selling the home before that time. We wish you well in your search. One of two things will happen, you'll either find a way to save yourself some money by refinancing now, or you'll find yourself better prepared to take advantage of the next refinance opportunity that comes your way. Either way you win. Too many people just resign themselves to their current loan and aren't so proactive at exploring opportunities for improving their situation. Calculators4Mortgages applauds you for being such a proactive manager of your financial affairs.

  3. Bonnie 25, Jul, 2008

    I have a 2007 manufactured home, and with the new law they just passed. I need to refinance my home. I also need the 3.25% or lower. Is there anyone you know of that can help me with this kind of 30yr, fixed loan? Is this fanny mae, or the other one anyone that I can go thru? please help! - - - - EDITOR'S COMMENT: It's difficult to make a recommendation without knowing the particulars of your loan, equity, and credit situation. For example, what type of loan did you use to buy your 2007 mobile home? If it was a Fannie Mae loan, you can refinance to a new Fannie Mae loan even if the home's value has dropped, as long as you are current on your payments. If it was a subprime (bad credit) loan or an adjustable rate mortgage (ARM), you may be able to refinance to an FHA loan, even if you had trouble making your house payment. It is doubtful that there are any fixed-rate mortgages at 3.25%; however you may be able to obtain an ARM with a low rate. Rates and programs change all the time. Your best bet is to contact several lenders and see how they might be able to help you. You can even use the "home loan finder" feature on Calculators4Mortgages to find lenders who can consult with you on this issue.

  4. will 17, Mar, 2008

    This calculator does not consider a change in the loan term. Many borrowers are switching from 30YR fixed to a 15YR or 20YR fixed. Thanks EDITOR'S COMMENT - - Good Suggestion. We have acted on this request. You can now specify a change in term length. We're added other new features, too, that improve the usefulness of this calculator. Enjoy!

  5. Dee 09, May, 2007

    want to refinance


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