Refinance Savings Calculator
Calculate potential savings from refinancing your mortgage
About this calculator
The Refinance Savings Calculator helps homeowners determine if refinancing their mortgage will save money over time. By comparing your current loan terms with potential new rates and fees, this tool calculates monthly payment differences, total interest savings, and break-even points. It's essential for making informed refinancing decisions, especially when interest rates drop or your credit score improves, helping you understand the true financial impact before committing to a new mortgage.
How to use
Enter your current mortgage details including balance, interest rate, and remaining term. Then input the new loan's proposed interest rate, term length, and closing costs. The calculator will instantly show your potential monthly savings, total interest savings over the loan life, and how long it takes to recoup refinancing costs through reduced payments.
Frequently asked questions
When does refinancing make financial sense?
Refinancing typically makes sense when you can lower your interest rate by at least 0.5-1%, reduce monthly payments, or access home equity for major expenses.
What costs should I include in refinancing calculations?
Include all closing costs such as appraisal fees, origination fees, title insurance, attorney fees, and any points paid to reduce the interest rate.
How long should I plan to stay in my home after refinancing?
You should typically plan to stay at least as long as the break-even period to recoup refinancing costs through monthly savings.