Rate & Term Refinance Calculator
Calculate potential savings from rate and term refinancing. Compare your current mortgage with a new loan to see monthly payment reductions, interest savings, and break-even analysis.
Step 1: Current Loan Details
Understanding Rate & Term Refinancing
Rate and term refinancing replaces your existing mortgage with a new loan at a different interest rate and/or term length. This can lower monthly payments, reduce total interest paid, or shorten the loan term.
Step 2: New Loan Details
About Closing Costs
Closing costs typically range from 2% to 5% of the loan amount. These include lender fees, appraisal, title insurance, and other settlement costs. Consider these when calculating your break-even point.
Refinance Savings Results
Estimated Monthly Savings
Loan Term Comparison
| Loan Term | Monthly Payment | Total Interest | Savings vs 30-year |
|---|
Payment Breakdown
Refinance Calculation Formula
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]
P = Loan principal, r = Monthly interest rate (annual rate ÷ 12), n = Total number of payments (term in years × 12)
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