Refinance Calculator

Thinking about refinancing? Our refinance calculator helps you compare your current loan with refinance options. You can see changes in monthly payments, total interest, payoff date, and break-even point. This information appears in a clear and easy-to-read format.

What Is Loan Refinancing?

Loan refinancing means replacing your existing loan with a new one, ideally on better terms. It’s common for mortgages, auto loans, and student loans.

When someone backs a loan with collateral, like a house or car, they usually transfer that collateral to the new loan.

If money issues cause the change, people call it debt restructuring. This process aims to reschedule overdue debts to improve cash flow.

For quick checks, use a PMI removal calculator to see if you can remove mortgage insurance. You can also use a VA residual income calculator to see if you qualify for a VA loan. Consider a car refinance calculator to find savings on your auto loan.

Why Refinance?

• Save on Interest

If rates have fallen since you borrowed or your credit score has improved, you may qualify for a lower rate. That can reduce lifetime interest and shorten your payoff timeline.

• Get Cash (Cash-Out Refinance)

As you build equity, you can refinance to a higher balance and take cash out for significant expenses. Be mindful of fees; unless you also secure a lower rate, cash-out refinancing can cost more overall.

• Lower Your Monthly Payment

Extending the term or reducing the rate can bring your payment down and ease your budget. The tradeoff is usually paying more total interest over the life of the loan.

• Shorten the Term

Switching from a 30-year mortgage to a 15-year mortgage usually means a lower interest rate. However, your monthly payment may increase.

• Consolidate Debts

Rolling multiple loans into one simplifies due dates and, with a competitive rate, can reduce what you pay in interest.

• Switch Rate Types

You can switch from variable to fixed rates to keep your payments stable.”You can switch from fixed rates to variable rates. This is a good option if you are comfortable with changes in rates. You have the option to save money briefly.

How the Refinance Calculator Helps

• Compare current vs. new loan terms side by side.
• Estimate monthly payments, total interest, and break-even (when savings offset closing costs).
• Model rate changes, term length adjustments, and cash-out amounts.
• See how refinancing shifts your payoff date and long-term savings.

FHA Refinance Paths: Streamline or Switch to Conventional

FHA loans are accessible but include ongoing mortgage insurance premiums (MIP). Once you have about 20% equity, switching from an FHA loan to a conventional loan can help. This change can remove the ongoing MIP and lower your monthly payment.

You can also consider the FHA Streamline Refinance. This option often needs less paperwork. It can also lower your rate if your loan is in good standing and you qualify.

To remove insurance, check your equity and your lender’s rules. VA borrowers should confirm the program requirements with their lender before moving forward.

Rate-and-Term Refinance: Lower Rate or Different Term, No Cash Out

Keep roughly the same balance but target a better interest rate, a shorter payoff timeline, or both. This option is popular when market rates fall or when you want to accelerate payoff without tapping equity.

What Will It Cost? Understanding Refinance Expenses

Most refinances come with closing costs. Enter them in your calculator to see accurate savings and your break-even point.

Common Closing Costs, Explained

• Application fee: ~1% of the loan amount to process the file (approved or not).
• Home appraisal: Confirms value/equity; typically a few hundred dollars.
• Origination fee/points: Usually 0%–2% of the loan; points can buy down your rate.
• Document prep: A few hundred dollars for disclosures and final paperwork.
• Title search: This checks if the title is clear and free of issues. It usually costs a few hundred dollars.
• Recording fee: County/city charge to record the new mortgage.
• Flood certification: Required in certain areas.
• Inspections: As needed (roof, pests, HVAC, etc.); usually a few hundred dollars.
• Survey: A recent study may enable someone to waive these boundaries.