Decide if you should refinance and save money by comparing your original home loan, interest rate, term length, and monthly payment.
Original Mortgage
New Mortgage
Refinance and you can save $XXX a month.
You can also save $XXX over the life of your loan.
A refinance will make your monthly payment increase by $XXX .
But, you can save $XXX,XXX over the life of your loan.
Refinancing can help you save $XXX a month, but you'll be spending $XXX,XXX more over the life of your loan. Ask yourself what's most important: short term or long term savings.
It is not the right time for a refinance.
Your monthly payments would increase by $XXX , and you'd be looking at a long term loss of $XXX,XXX .
Original Payment*
/mo
New Payment*
/mo
*Includes principal and interest only.
Monthly Savings
/mo
Lifetime Savings
Payoff Schedule

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Amortization Graph

You will save $XX,XXX on the interest of the loanYou will owe $XX,XXX in interest and will pay your loan off   .
ANNUALLYMONTHLY
    Date
      Payment
        Interest
          Principal
            Ending Balance

              Calculator Definitions

              Original Loan Amount

              The original amount borrowed from a lender to obtain a mortgage loan. This represents the total mortgage amount including fees, points, etc… as stated on the closing disclosure.

              Payoff Schedule

              The amount of time saved on the current loan schedule by making additional payments toward the principal mortgage balance.

              Loan Term

              The amount of time (usually expressed in years) in which a borrower is required to make monthly payments toward a home loan.

              Interest Rate

              The annual cost to borrow money from a lender based on a percentage of the loan amount. Interest rates exclude mortgage "points" and fees charged to get the loan.

              Lifetime Savings

              Your lifetime savings is an estimate of the amount of money you may save over the life of your loan should you choose a new mortgage.

              Additional Principal Payment

              Extra payments applied to the mortgage above the monthly requirement. These payments are typically used to settle existing late charges or fees before being applied to the principal.

              What’s the cost to refinance a mortgage?

              We have an entire article that explains the various costs associated with refinancing a mortgage. It’s common for borrowers to spend thousands of dollars on closing costs alone. There are also a number of fees to account for, including origination fees, an appraisal fee, and a home inspection fee.

              The cost to refinance a home loan varies by borrower. To keep closing costs as low as possible, be sure to improve your credit score and debt-to-income ratio (DTI) before submitting your application. Lastly, choose a lender who offers both a low rate and minimal fees.

              Defining the break-even point on a mortgage refinance

              So how can you figure out when you’ll break even on your new loan? All you have to do is calculate when your monthly savings become greater than the refinancing costs.

              Let’s consider an example. Say you spent $4,000 in fees on a recent mortgage refinance and will be saving $400 a month. Some quick math tells us that 4,000 divided by 400 is 10, meaning your break-even point is 10 months.

              The amount of time you plan to stay in your home should factor into your decision to refinance. If you’re hoping to move in the next year, a refinance probably doesn’t make sense. That said, if your break-even point isn’t for five years but you intend to remain in the house for the foreseeable future, it may be worth moving forward with the process.

              Schedule a free mortgage review with one of our dedicated consultants to know for sure.

              Next steps

              We encourage you to explore the above mortgage refinance calculator and determine when the savings outweigh the costs. Remember that every borrower’s situation is different. And don’t forget to reach out to one of our mortgage experts for individualized advice as it relates to refinancing.

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