Mortgage Refinance Calculator

Use the refinance calculator to find out how much money you could save every month by refinancing.

Calculate your potential savings

Note: Calculators display default values. Enter new figures to override.

Disclaimer

Results include a 1.5% (of loan amount) closing cost default setting.

The resulting monthly mortgage payment doesn’t include the cost of Mortgage Insurance (MI), which may be required.

Results in no way indicate approval or financing of a mortgage loan. Contact a mortgage lender to understand your refinance options and apply.

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More about this calculator

There are many reasons to refinance your home. These include:

Lowering your monthly payment if the interest rate is lower than the rate on your current mortgage.
Building equity faster if you refinance a 30-year term loan with a 15-year term. This will likely significantly raise the monthly loan payment but save a substantial amount of interest over the life of the loan.
Gaining more financial stability if you have an adjustable-rate mortgage (ARM) by refinancing with a fixed-rate mortgage.
Financing home renovations by combining your home mortgage with any new renovations into a single mortgage with only one monthly payment.
Using the equity you already have in your home to obtain a cash-out refinance, which provides cash for renovations, reducing other debts, or other purposes.
Changing or transferring ownership and financial responsibility of the home.

When you refinance your home, you are taking out a loan to pay off your existing mortgage and replacing it with a new one, which may have more favorable terms.

Refinancing involves an application and approval process with associated fees, similar to your original mortgage.

Refinancing typically costs between 2% and 5% of the amount of the new loan. Depending on the loan, fees can be paid up front or rolled into the new monthly payment amount.

Here's how to calculate how much you can save by refinancing your mortgage using this tool.

First, enter your existing mortgage information:

First monthly mortgage balance: Your current principal balance or payoff amount.
Estimated home value: The current value of your home. If you’re not sure of the current appraised value, check the selling price of similar homes in your area.
Loan-to-value (LTV) ratio: LTV is a calculation frequently used by mortgage companies when qualifying borrowers for a mortgage. This number is calculated by dividing your mortgage balance by your home’s current market value.
Monthly payment (principal and interest only): This number can be found on a recent mortgage statement, or you can get it from your mortgage servicer.
Annual property taxes: These are yearly taxes determined by the local government. They are a percentage of your home’s value, based on location, and may also include school and hospital taxes.
Annual property insurance: This is the amount you pay each year for property insurance.
Annual homeowners association (HOA) fees: Payments required from homeowners in a specific neighborhood or community (typically paid monthly) to cover the community operating costs and contributions to the reserve fund. These fees are not included in mortgage payments and are paid directly to the HOA. The specific purposes of the fees vary for different communities. To get the annual amount, multiply the monthly amount by 12.

Next, enter your refinancing information. This includes:

New term: The loan repayment period for the new loan.
Interest rate: The interest rate for the new loan.
Closing costs: Various fees required to conclude a real estate transaction, usually 1% – 2% of the loan amount.

Once you’ve entered this information, the calculator will display your new total monthly payment estimate with a breakdown that includes your potential monthly and annual savings.

Total monthly payment: The total monthly payment includes mortgage principal, interest, taxes, insurance, and HOA fees, if applicable. 
Potential monthly savings: The difference in cost between your current monthly payment and the new refinanced monthly payment.
Potential annual savings: The difference in cost per year (monthly payment multiplied by 12).