Mortgage Refinance Calculator
Analyze your refinance options with break-even analysis, lifetime savings calculations, and cash-out scenarios. Make data-driven refinancing decisions.
📊 Current Loan Details
✨ New Loan Options
Typical: 2-5% of loan amount
1 point = 1% of loan, reduces rate ~0.25%
💵 Cash-Out Refinance Option
Max LTV: 80% = $0
⚙️ Analysis Options
For mortgage interest deduction calculations
Refinance Analysis
Monthly Payment Change
Break-Even Analysis
Total Interest Savings
Recommendation
📊 Loan Comparison
📈 Savings Timeline
Year 1 Net Savings
-
5-Year Net Savings
-
10-Year Net Savings
-
🎯 When to Refinance
- ✓ Rate drops 0.75% or more
- ✓ Break-even under 36 months
- ✓ Planning to stay 5+ years
- ✓ Need to eliminate PMI
- ✓ Switch from ARM to fixed
💰 Hidden Costs
- • Application fees ($300-500)
- • Appraisal ($400-700)
- • Title insurance ($1000+)
- • Recording fees ($100-250)
- • Origination (0.5-1% of loan)
🚫 When NOT to Refinance
- ✗ Moving within 2-3 years
- ✗ Already refinanced recently
- ✗ Near loan payoff
- ✗ Poor credit score
- ✗ High closing costs
Frequently Asked Questions
What is a good break-even period for refinancing?
Generally, a break-even period of 2-3 years (24-36 months) is considered good. If you plan to stay in your home longer than the break-even period, refinancing likely makes financial sense.
Should I refinance if rates drop by 0.5%?
A 0.5% rate reduction might be worthwhile depending on your loan balance and closing costs. Use this calculator to check if the monthly savings justify the closing costs. Generally, a 0.75-1% reduction is more clearly beneficial.
What is cash-out refinancing?
Cash-out refinancing replaces your existing mortgage with a larger loan, giving you the difference in cash. This is often used for home improvements, debt consolidation, or investments. Most lenders limit cash-out to 80% of home value.
How do points work in refinancing?
One point equals 1% of your loan amount and typically reduces your rate by 0.25%. Points make sense if you'll keep the loan long enough for the lower payments to exceed the upfront cost.