Lower Monthly Payment
Explore whether a different rate, term, or loan structure could reduce the estimated monthly principal-and-interest payment.
Refinance Planning
Refinance With a Clearer Plan.
Explore how a different mortgage structure could affect your monthly payment, interest costs, loan term, and financial goals before speaking with a licensed mortgage professional.
Common Reasons
Why Homeowners Consider Refinancing
Each scenario should be evaluated with costs, term, risk, and clear objectives, not only a monthly payment.
Shorten the Loan Term
Compare how moving to a shorter term may change the payment and total estimated interest.
Change Loan Structure
Learn about evaluating different mortgage structures when appropriate.
Access Home Equity
Cash-out refinancing may allow eligible homeowners to replace an existing mortgage with a larger loan and receive a portion of available equity, subject to lender and program requirements.
Remove or Evaluate Mortgage Insurance
Mortgage insurance treatment depends on loan type, equity, program guidelines, and other requirements.
Consolidate Certain Debts
Using home-secured debt to pay other obligations changes the nature and risk of that debt and should be evaluated carefully.
Planning Numbers
Refinance Savings Calculator
Compare a current loan with a proposed scenario using deterministic amortization math.
Estimated Refinance Results
Payment SavingsEstimated monthly payment savings: $252.44Estimated annual payment savings: $3,029.29
- Current estimated monthly P&I
- $2,464.68
- New estimated monthly P&I
- $2,212.24
- Estimated closing costs
- $6,500
- Break-even period
- 26 months
- New estimated loan amount
- $350,000
- Current remaining term
- 27 years
- New selected term
- 30 years
Current Mortgage
- Current loan balance
- $350,000
- Current interest rate
- 7.25%
- Current estimated monthly P&I
- $2,464.68
- Estimated interest remaining on current loan
- $448,556
Proposed Refinance
- New estimated loan amount
- $350,000
- New interest rate
- 6.5%
- New estimated monthly P&I
- $2,212.24
- Estimated interest over full proposed refinance term
- $446,406
Total Interest / Term EffectsPlanning-horizon payment comparison$15,146.45 less in estimated payments over the horizon. After estimated costs: $8,646.45.
Florida
Property Details
This is an estimate for planning purposes only. Actual lender, title, government, recording, prepaid, escrow, insurance and third-party charges may vary. Final charges are determined by the lender, title/settlement provider and applicable government authorities.
Estimated Closing Costs--
Estimated for planning purposes. Actual closing costs may vary.
Configured closing-cost subtotal only. Excludes unconfigured or conditional title insurance, endorsements, survey, county recording and other jurisdiction charges, prepaids, and escrows. This is not a complete closing-cost total.
For educational and planning purposes only. Results are estimates based on the information and assumptions entered and are not a loan estimate, rate quote, approval, commitment to lend, or guarantee of savings.
Actual rates, APR, closing costs, escrow, mortgage insurance, taxes, insurance, prepaid items, and loan eligibility may differ. Refinancing restarts or changes the amortization schedule and may increase total interest even when the monthly payment decreases. Cash-out refinancing reduces available home equity and increases the mortgage balance. Actual refinance options depend on credit, income, property, equity, occupancy, loan program, investor, and underwriting requirements.
How we calculate this
Monthly principal and interest uses the standard amortization formula. If closing costs are paid in cash, the new principal equals the current balance. If costs are financed, the new principal equals the current balance plus the estimated financed costs entered here. Break-even is estimated closing costs divided by estimated monthly payment reduction and is shown only when the proposed payment is lower.
M = P * [r(1+r)^n] / [(1+r)^n - 1]. When the rate is 0%, payment is calculated as principal divided by months.
Responsible Evaluation
When Does Refinancing Make Sense?
The calculator can frame a conversation, but it does not determine whether refinancing is right for a specific situation.
Potentially Worth Evaluating
- meaningful payment reduction
- appropriate break-even relative to the expected ownership horizon
- deliberate term reduction
- restructuring a mortgage for a clearly defined financial objective
- appropriate equity strategy
Reasons to Evaluate Carefully
- high closing costs
- resetting a nearly completed mortgage into a long new term
- minimal payment improvement
- plans to sell soon
- converting unsecured debt into debt secured by the home
- excessive cash-out without a clear financial objective
Break-Even
Break-even is only one part of the analysis.
Break-even estimates how long payment savings may take to recover estimated refinance closing costs. By itself, it does not determine whether refinancing is financially beneficial because term changes, financed costs, interest, tax considerations, and homeowner objectives also matter.