Refinance Calculator

Your savings depend on your current rate, new rate, remaining balance, and term. Suppose you owe $350,000 at 7.25% with 27 years left — your payment is about $2,464. Refinance to 6% for 30 years and the payment drops to $2,098, saving $366 per month or $4,392 per year. Over 30 years, the new loan costs $755,280 total, but if you'd kept the old loan for 27 more years, you'd pay $798,336. The monthly savings are real, but extending the term means you'll pay interest for three extra years. If you refinance to a 15-year loan at 5.5% instead, your payment rises to $2,859 but total interest falls to $164,620. Use the refinance calculator to test both scenarios with your actual numbers, then compare against our mortgage calculator to see how extra payments change the outcome.

A break-even period under 36 months is generally considered strong, but the right number depends on how long you plan to stay in the home. If closing costs are $7,000 and you save $250 per month, you break even in 28 months. Stay five years and you pocket $8,000 in net savings after costs. If you might sell in two years, you'd lose money — you'd pay $7,000 in fees and only recoup $6,000 in savings. On a $400,000 loan, closing costs often run $8,000 to $20,000, so the break-even math matters. You can reduce costs by negotiating lender fees, choosing a no-closing-cost refinance with a slightly higher rate, or using a lender credit. Run your numbers in the refinance calculator, then use our loan calculator to model different cost scenarios and see how quickly you'd come out ahead.

A shorter term raises your monthly payment but slashes total interest. Take a $300,000 balance: at 6% for 30 years, you pay $1,798 per month and $347,515 in interest. Refinance to 15 years at 5.5% and the payment jumps to $2,451, but total interest drops to $141,180 — a savings of $206,335. The trade-off is $653 more per month. That works if your income supports it and you're not sacrificing retirement contributions or emergency savings. If the higher payment feels tight, a middle path is a 20-year loan at 5.75%: $2,106 per month and $205,440 in interest. You can also keep a 30-year term and make extra principal payments when possible, which gives you flexibility without a locked-in higher payment. Use the refinance calculator to compare 15-, 20-, and 30-year options side by side, then check our mortgage calculator to see how biweekly payments or extra annual payments accelerate payoff.

A refinance typically causes a small, temporary drop — usually 5 to 10 points — because the lender runs a hard credit inquiry and the new account lowers your average account age. If you shop multiple lenders within a 14- to 45-day window, most scoring models treat all mortgage inquiries as one, minimizing the impact. The bigger factor is your debt-to-income ratio: adding a new loan can raise it temporarily until the old loan reports as paid off. On-time payments on the new loan gradually rebuild your score, and within 6 to 12 months you're often back to where you started or higher. For example, if you refinance a $250,000 mortgage and your score drops from 740 to 732, you may still qualify for the same rate tier. Check your score before applying and avoid opening other credit accounts during the process. If you're also considering a car loan, our auto loan calculator can help you see how a refinance fits into your broader borrowing plan.

Yes, but you'll likely pay for mortgage insurance. Conventional loans typically require at least 20% equity to avoid PMI; below that, you'll pay 0.3% to 1.5% of the loan amount annually. On a $300,000 loan with 10% equity, PMI could cost $1,500 to $4,500 per year — $125 to $375 per month. FHA refinances allow as little as 3.5% equity but charge mortgage insurance premiums upfront (1.75%) and annually (0.45% to 1.05%). VA loans let eligible veterans refinance with 0% down and no monthly mortgage insurance, though there's a funding fee of 0.5% to 3.3%. If you have less than 20% equity, run the numbers carefully: a lower rate might be erased by insurance costs. For example, dropping from 7% to 6% on a $300,000 loan saves $188 per month, but $200 in PMI wipes out the benefit. Use the refinance calculator to include these costs, and check our mortgage calculator to see how home value changes affect your equity position over time.

Typical refinance closing costs run 2% to 5% of the loan amount. On a $300,000 loan, that's $6,000 to $15,000. Common fees include origination (0.5% to 1%, or $1,500 to $3,000), appraisal ($300 to $600), title search and insurance ($700 to $1,200), credit report ($25 to $50), flood certification ($15 to $25), and recording fees ($50 to $150). You may also prepay property taxes and insurance into escrow, which adds several thousand dollars upfront but isn't a true cost — it's money you'd owe anyway. Lenders sometimes offer a no-closing-cost refinance where fees are rolled into the loan or offset by a higher rate. For example, a 6.25% rate instead of 6% on a $300,000 loan costs about $47 more per month — $16,920 over 30 years — so you'd need to stay long enough for the lower-rate option to win. Compare loan estimates line by line, and use our loan calculator to model how rolling fees into the balance affects your payment and total interest.