Free Refinance Calculator

Compare your current mortgage with a refinance option. See monthly savings, total savings, and break-even point for refinancing.

USD
%
years
%

Monthly Savings

$347.48

Current Monthly Payment$1,766.95
New Monthly Payment$1,419.47
Current Total Cost$530,084.40
New Total Cost$511,010.10

Monthly Savings vs Years Remaining on Current Loan

How Refinance Savings Work

Refinancing replaces your existing mortgage with a new one, ideally at a lower interest rate. Savings come from the difference in monthly payments.

Key Factors

  • Lower rate = lower monthly payment
  • New term length affects total interest paid
  • Closing costs must be factored into break-even analysis
  • Compare the total cost of remaining on your current loan vs the total cost of the new loan.

    Example Calculation

    You owe $250,000 at 7% with 25 years remaining. You can refinance at 5.5% for 30 years.

    1. 01Current monthly payment: $250,000 at 7% for 25 years = $1,767.63
    2. 02New monthly payment: $250,000 at 5.5% for 30 years = $1,419.47
    3. 03Monthly savings: $1,767.63 - $1,419.47 = $348.16
    4. 04Current total remaining cost: $1,767.63 * 300 = $530,289.00
    5. 05New total cost: $1,419.47 * 360 = $511,009.20

    Frequently Asked Questions

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