Logo
Home

Refinance Tools

Interest Rates

Account
Blog
Get personalized alerts

Refinance Calculator

Is refinancing worth it?

Compare your current mortgage with a refinance offer, including closing costs and how long you plan to keep the loan.

Try a Sample Mortgage

Current loan

Let's start with your current mortgage. We'll use this to base our calculations and ensure that our estimates are as accurate as possible. All the required information should be available in your loan documents.

How would you like to enter your current loan?

$

We use this to estimate your remaining balance and projected monthly savings.

Tells us how far you are into the loan so we can estimate your balance.

%

Sharing your current rate helps us benchmark savings.

MM/YYYY

Pinpoints how many payments you have made to calculate your remaining balance.

I pay Private Mortgage Insurance (PMI)
Common if down payment was < 20%
YYYY

We check whether refinancing pays off before the year you plan to sell.

New loan

Now let's talk about what your refinanced loan would look like so we can compare. We've provided some estimates on mortgage rates and closing costs based on current market averages.

$

This is calculated based on your estimated remaining loan balance.

%

$

Closing costs are usually 2%–6% of the loan. Add your mortgage details so we can estimate the dollar range.

Pay upfront means you pay closing costs at closing. Roll into loan means those costs are added to your new loan balance and repaid over time.

$

This is extra money you borrow when refinancing. It gets added to your current loan balance and paid to you in cash at closing.

Please note that this calculator is intended for general planning purposes only. To best understand your situation and options, please consult with a financial adviser or with a loan officer who will have the most up to date and accurate information. If you have general questions or need help, reach out to our support.

How this calculator decides if refinancing is worth it

A lower rate or payment does not automatically make a refinance a good deal. The calculator compares your current loan with the new offer across four decision points.

  • Monthly payment change

    Compare the estimated principal-and-interest payment for the current loan and refinance offer. PMI is included when you provide it.

  • Break-even point

    See how long estimated monthly savings take to recover closing costs, whether you pay those costs upfront or add them to the new loan.

  • Cost before you sell

    Compare estimated costs through the year you expect to sell so a refinance that pays off too late does not look better than it is.

  • Remaining lifetime cost

    Compare the remaining interest, PMI, and refinance costs. This can reveal when a lower payment comes mainly from restarting a longer term.

Worked example: a 30-month break-even

$6,000 in closing costs divided by $200 in monthly savings equals a 30-month break-even. Selling or refinancing again after 24 months means the estimated payment savings have not yet recovered those costs. If you expect to keep the loan for five years, compare the cost through that date and the remaining lifetime cost before deciding.

What the estimate assumes

Monthly payments cover principal and interest plus PMI when supplied; taxes, homeowners insurance, and HOA dues are excluded. Results are estimates rather than loan offers, and they do not account for tax consequences or changes to rates, fees, home value, or your plans.