Mortgage Refinance Calculator

Refinance Calculator

Proposed Mortgage

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Mortgage Amount:
Interest Rate:
Number of Years:
Mortgage Closing Costs:
Mortgage Points:
New Monthly Payment:
Monthly Savings:
Total Closing Costs:
Months to Break Even:


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By using this calculator you agree to terms and conditions. These calculators are designed to be informational and educational tools only, and when used alone, do not constitute investment or financial advice. We strongly recommend that you seek the advice of a financial services professional before making any type of investment or deciding on your financial matters. This model is provided as a rough approximation of future financial performance. The results presented by this calculator are hypothetical and may not reflect the actual growth of your own investments. We can't take into account potential lender fees, payoff schedule can be longer than in the estimation. Financialfreedom and its affiliates are not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by these tools. Financialfreedom is not responsible for any human or mechanical errors or omissions.

There are many good reasons to refinance your mortgage. They include the ability to qualify for lower interest rates and wanting to reduce your monthly mortgage payment. Refinancing can minimize risks from adjustable rate mortgages, or shorten your mortgage term.

You can use this refinance calculator to see how a lower interest rate affects your monthly mortgage payment. Refinancing can save you hundreds of dollars per month on your mortgage. Added together, this can represent tens of thousands of dollars of savings over the life of your mortgage. Try out our calculator to find out how much you could save.

How to Use Our Refinance Calculator

Using the Refinance Calculator is simple. You may input values directly in the applicable box or adjust the slider.

  1. Enter your current payment.
  2. Under the Proposed Mortgage section, enter the original amount of the mortgage and the new interest rate.
  3. Input the length of your mortgage in the box for Number of Years.
  4. Put in the amount of your closing costs.
  5. Choose the value of your mortgage points from the drop-down list.

Refinance Calculator Definitions

You should understand the following terms about refinancing your mortgage when using this calculator.

Amortization. A method of resolving debt by paying regular installments over time.

Current Payment. The amount you presently spend to cover your monthly mortgage.

Interest Rate. What your lender charges for credit, equal to a percentage of the mortgage principal.

Mortgage Amount. The amount of money the borrower is obligated to repay.

Months to Break Even. How long it will take for you to recover the cost of refinancing the mortgage.

Mortgage. A legal agreement in which a lender offers money in exchange for the title of the borrower’s property. The money is lent on the condition that it will be repaid with interest. The title will be returned to the borrower upon the full payment of the debt.

Mortgage Closing Costs. Any costs, over and beyond the price of the property, which are normally acquired when completing the real estate transaction. These costs may be undertaken by both the buyer and seller.

Mortgage Points. These are also known as percentage points. For real estate purchases, they are the original fees charged by the lender. Each point is equivalent to 1% of the amount of the mortgage.

Number of Years. The length of your mortgage, in years.

Understanding the Results

Imagine you currently have a 30-year, $250,000 mortgage that you’re paying $2500 per month towards. You want to switch to a mortgage with an 8% interest rate. The lender suggests that your closing costs would be about $500, and you’ll be credited 0.125% in mortgage points. Putting this information into the calculator yields the following results.

Your new mortgage payment will be $1834.41, instantly saving you $665.59 on your previous payments. You’ve just saved 26.6% of your monthly mortgage expense by refinancing. Over the cost of a year, you would have saved $7990.92; almost $8000 from refinancing alone. In order to finalize the refinancing process, you’ll pay closing costs of $812.50. Based on your cost savings, it will take you 1.22 months to break even.

Save Money by Refinancing

Using the refinance calculator is an excellent way to see how much money you can recoup under new mortgage terms. Refinancing can free hundreds to thousands of dollars per year from your mortgage obligation. You should use it as soon as a lower interest rate for your mortgage becomes available. The savings can be applied to pay off debt, or to achieve another one of your goals.

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