Mortgage Refinance Calculator
Should you refinance? Find out if refinancing your mortgage makes financial sense based on interest rates, closing costs, and your time horizon
Current Loan
New Loan
Typical range: 2-5% of loan amount
When to Refinance
- ✓Interest rates drop: At least 0.5-1% lower than current rate
- ✓Improved credit: Your score increased since original loan
- ✓Long-term plans: You'll stay in home past break-even point
- ✓Lower payments: Need to reduce monthly obligations
- ✓Cash-out option: Access equity for home improvements or debt consolidation
- ✓ARM to fixed: Lock in rate if you have adjustable-rate mortgage
Refinancing Costs to Consider
- •Application fee: $75-$500
- •Origination fee: 0.5-1% of loan amount
- •Appraisal: $300-$700
- •Title search & insurance: $700-$1,000
- •Attorney fees: $500-$1,500
- •Total typical range: 2-5% of loan amount
Pro Tips for Refinancing
📊 Shop Around
Get quotes from at least 3-5 lenders. Rates can vary significantly.
💳 Improve Credit First
Wait a few months to boost your score for better rates.
📅 Time It Right
Refinance when rates are low and you have at least 10+ years remaining.
💰 Negotiate Fees
Many closing costs are negotiable. Don't accept the first offer.
🔍 Read the Fine Print
Watch for prepayment penalties on your current loan.
⚡ Consider No-Closing-Cost
Higher rate but no upfront costs - good if moving soon.
⚠️ Important Considerations
- ✓ Refinancing restarts your loan term unless you choose a shorter term
- ✓ Break-even point assumes you stay in the home - factor in moving plans
- ✓ Check your current loan for prepayment penalties
- ✓ Your home must appraise at adequate value for refinancing
- ✓ Consider tax implications - mortgage interest deduction may change
- ✓ This calculator provides estimates - get official quotes from lenders
Ready to Explore Your Options?
Use our other calculators to plan your complete debt payoff strategy