Refinance Calculator

Refinancing your mortgage can help you save money through lower monthly payments or reduced interest costs. However, it's important to consider all factors before making a decision.

When to Consider Refinancing

• Interest rates are significantly lower than your current rate
• Your credit score has improved since your original mortgage
• You want to switch from an adjustable to a fixed rate
• You need to tap into your home's equity
• You want to change your loan term

Costs to Consider

• Closing costs (typically 2-6% of loan amount)
• Points (optional upfront payment to lower rate)
• Appraisal fees
• Title insurance
• Application and origination fees

Break-even Analysis

The break-even point is when your savings from refinancing exceed the costs. To calculate:

• Total all refinancing costs
• Calculate monthly payment savings
• Divide total costs by monthly savings
• Result is the number of months to break even

Types of Refinancing

• Rate-and-term refinance: Change your interest rate and/or loan term
• Cash-out refinance: Borrow against your home's equity
• Cash-in refinance: Pay down principal to get better terms
• Streamline refinance: Simplified process for FHA and VA loans