# Mortgage Refinance Calculator

URL: https://speedycalculator.com/calculators/finance/mortgage-refinance/
Last updated: 2026-10-25

> The mortgage refinance calculator compares your current mortgage with a new one – rate, term, points and closing costs – showing the new payment, monthly savings, total interest and the break-even point when the refinance starts to pay off.

## Inputs

- Original mortgage amount
- Current interest rate (%)
- Original term (years)
- Years already paid
- New loan term (years)
- New interest rate (%)
- Mortgage points (%)
- Costs of refinancing
- Cash out (+) or paid in (−)
- Refinancing costs are

## Results

- Current monthly payment
- Current balance
- Cost of refinancing (incl. points)
- New loan amount
- New monthly payment
- Monthly savings
- Break-even
- Remaining interest on the current loan
- Total interest on the new loan
- Lifetime saving (interest − costs)

## Formula

```
Current balance = balance after the payments already made
New loan = current balance + costs (if financed) + cash out
Monthly saving = old payment − new payment
Break-even months = refinancing costs ÷ monthly saving
```

## Explanation

A common rule of thumb is to refinance when you can cut your rate by 0.75–1 percentage point and will stay past the break-even point. Restarting a 30-year term lowers the payment but can increase total interest.

### How to use the Mortgage Refinance Calculator

- **Original mortgage amount**
- **Current interest rate**
- **Original term**
- **Years already paid**
- **New loan term**
- **New interest rate**
- **Mortgage points**
- **Costs of refinancing**
- **Cash out (+) or paid in (−)**
- **Refinancing costs are**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the original mortgage, its rate and term and years paid, then the new term, rate, points, refinancing costs and any cash out.

### Tips

- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.

### Common mistakes to avoid

- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.

### Inputs explained

FieldWhat to enterOriginal mortgage amountAmount in your currencyCurrent interest rateIn %Original termIn yearsYears already paidA numberNew loan termIn yearsNew interest rateIn %Mortgage pointsIn %Costs of refinancingAmount in your currencyCash out (+) or paid in (−)Amount in your currencyRefinancing costs areChoose one: Paid upfront, Rolled into the new loan

### What each result means

- **Current monthly payment** = pmt([Current interest rate]÷1200, [Original term]×12, [Original mortgage amount])
- **Current balance** = max(bal([Original mortgage amount], [Current interest rate]÷1200, [Original term]×12, [Years already paid]×12), 0)
- **Cost of refinancing (incl. points)** = [Costs of refinancing] + [Current balance]×[Mortgage points]÷100
- **New monthly payment** = pmt([New interest rate]÷1200, [New loan term]×12, [New loan amount])
- **Monthly savings** = [Current monthly payment] - [New monthly payment]
- **Remaining interest on the current loan** = [Current monthly payment]×([Original term] - [Years already paid])×12 - [Current balance]
- **Total interest on the new loan** = [New monthly payment]×[New loan term]×12 - [New loan amount]
- **Lifetime saving (interest − costs)** = [Remaining interest on the current loan] - [Total interest on the new loan] - [Cost of refinancing (incl. points)]

### Example values

How the main result changes when **Original mortgage amount** changes and everything else stays at the example values above:

Original mortgage amountMonthly savings175,000142.34262,500228.5350,000314.66437,500400.82525,000486.98700,000659.3

## Worked example

Inputs — Original mortgage amount: $350,000; Current interest rate: 7.25 %; Original term: 30 years; Years already paid: 3; New loan term: 30 years; New interest rate: 6 %; Mortgage points: 0.5 %; Costs of refinancing: $5,000; Cash out (+) or paid in (−): $0; Refinancing costs are: Rolled into the new loan.

Results — Current monthly payment = $2,387.62; Current balance = $339,056.71; Cost of refinancing (incl. points) = $6,695.28; New loan amount = $345,751.99; New monthly payment = $2,072.96; **Monthly savings = $314.66**; Break-even = 21 months; Remaining interest on the current loan = $434,531.19; Total interest on the new loan = $400,512.84; Lifetime saving (interest − costs) = $27,323.07.

## FAQ

**When should I refinance?**
When the rate drop is large enough to recover costs before you sell – often 0.75–1 percentage point or more.

**What does refinancing cost?**
Typically 2–5% of the loan in closing costs.

**Does refinancing reset my loan?**
Yes, unless you choose a shorter term.

**What formula does the Mortgage Refinance Calculator use?**
Current balance = balance after the payments already made.


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)