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Ready to Crunch the Numbers?

Refinancing at the right time can be a big deal when it comes to your finances. Finding a lower rate, getting a lower monthly payment, or shortening your loan term are just a few examples of how you can save significant money on your mortgage.

Before looking at loans, we suggest taking a little time to look at the numbers and see if refinancing is right for you. We developed our free Refinance Calculator as a helpful tool that can show you how much you’re likely to save -- just fill in a few boxes and we’ll do the rest.

Mortage Refinance Calculator

Payoff Amount

This is the total remaining principle amount you owe to payoff your mortgage

Please provide a valid Payoff Amoun
Please provide a valid Interest Rate

Current Loan Remaining Years

This is the remaining term in years on your current mortgage.

For example, let's say your mortgage loan is a 30-year term. If you started this mortgage 10 years ago, you would input 20.

Please provide a valid Remaining Years
Please provide a valid Refinance Rate

Refinance New Term

This is the term, in years, for your new, refinance loan.

Most refiance terms are for 30, 20, or 15 years.

Please provide a valid New Term

Cash Out

Some homeowners like to borrow cash in addition to their mortgage, often to pay-off debt, fund a home renovation, or to help pay for other expenses

Please provide a valid Cash-Out

Current Monthly Payment (Principle + Interest)
New Monthly Payment (Principle + Interest)
Monthly Payment Difference
Yearly Payment Difference
Current Total Interest (Remaining left to be paid)
New Total Interest (To be paid going forward)
Total Interest Difference


Your Results and Your Goals

What you should do with your results depends on your refinance goals. To get a good idea of your current options, we recommend using our calculator several times with different variables -- homeowners hoping to lower their monthly payments might try increasing their term length, while those hoping to pay less interest over time might shorten their term. If you have any plans to remodel your home, you might opt to take some cash out. Switching your input can dramatically change your results, and some cases may not be beneficial to you while others are. Always keep your goals in mind and take note of which results seem to best align with them.

Common Reasons to Refinance

For many homeowners, refinancing can make a significant difference financially. Here are the potential benefits that homeowners typically consider:

  • Lower monthly payments: Homeowners interested in lower monthly payments can achieve just that by increasing their term length. This can mean greater financial stability as you’ll have more money in your pocket each month.
  • Less interest overall: For homeowners confident in their ability to pay higher monthly payments, refinancing to a loan with a shorter term can mean paying less interest overall.
  • Lower rates: If the rate you’re paying on your mortgage is higher than the refinance rates you see today, refinancing might lead to significant savings in the long run.
  • Borrowing cash: Some homeowners want to take cash out when they refinance in order to pay for some of life's big expenses, such as debt or home renovations.

When looking at the results from our calculator, keep in mind what your refinance goals are and consider whether it is currently possible for you to meet those goals. Look at how much your interest is likely to be reduced, what your monthly payments will be, the length of your loan term, and the costs of refinancing. Knowing where you stand and how plausible your goals are is key to a successful refinance.

What is the Break-Even Point?

As you move towards refinancing, it's important that you keep your break-even point in mind. A refinance break-even point is essentially when you’ll break even on all of the costs of refinancing and finally start saving money. Most homeowners don’t break even immediately -- in addition to new, potentially lower monthly payments and rates, you’ll have to pay off all closing costs and fees associated with refinancing before you’re actually saving, and this can take a few years.

Calculating how long it’ll take you to reach this break-even point and comparing this number to how much longer you plan to live in your current house is key to truly benefitting from refinancing. If there’s a significant chance that you might move before you break-even, then refinancing might cause you to lose more money.

What Are the Next Steps?

If it doesn’t look like a refinance is currently right for you, don’t worry. As you continue to pay off your current mortgage, your odds of getting a good deal on refinancing increase -- and as interest rates change all the time, you might even get a better rate later. If it does seem like refinancing right now is the right move to make, the next step is to start looking at lenders and comparing offers. While this can be confusing with how many lenders there are to choose from, it’s never a good idea to pick the first lender you look at. By taking the time to compare multiple options, you’ll be able to find the best one for your needs.

We aim to make the refinancing process as simple as possible. With how important it is to look at multiple lender options, we make it easy to do just that right on our site. Read our in-depth reviews, check our curated ratings, and compare the top refinance lenders today to find the best refinance option for you.

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