Calculateur de RefinancementFormule

## 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.

Exemple Résolu

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

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