A mortgage refinance calculator estimates whether replacing your current mortgage with a new one would lower your monthly payment, your total interest costs, or both.
What you currently owe on your existing mortgage.
How much time is left on your existing mortgage.
The rate on your existing mortgage.
A shorter term can lower total interest; a longer term resets your payoff timeline.
A rate you've been quoted, or a current average rate as a starting point.
Points and fees typically total 2% to 6% of your loan amount. One discount point costs about 1% of the loan and lowers your rate by roughly a quarter point.
Any additional amount you borrow beyond your current balance, drawn from your home's equity.
That's $394 less each month than your current $2,313 payment.
100% free · Fiduciary advisors · No obligation
These results are estimates, not predictions. They're calculated from the figures you entered and assume your rate of return and inflation rate hold steady every year, which real markets don't do. Change any input and the result changes. Use this to compare scenarios, not to plan around a specific number.
How your remaining balance falls under your current mortgage compared with the refinanced loan.
Enter your remaining loan balance and term, current rate, new loan term, new rate, points, fees, and cash-out amount if applicable. The calculator shows your new monthly payment, savings this year, lifetime savings, and your break-even point.
Remaining loan balance and term describe what you currently owe and how much time is left on your existing mortgage.
Current interest rate is the rate on your existing mortgage.
New loan term is the length of your new loan. Choosing a shorter term than you have remaining can lower your total interest even if your rate doesn't drop much. Choosing a longer term resets your payoff timeline.
New interest rate is the rate on the loan you're considering. You can enter a rate you've already been quoted, or use a current average rate as a starting point.
Points and fees are upfront costs paid to reduce your rate or process the loan, typically totaling 2% to 6% of your loan amount. A discount point usually costs 1% of your loan amount and lowers your rate by about a quarter of a percentage point.
Cash-out amount is any additional amount you borrow beyond your current balance, drawn from your home's equity.
The calculator's most important output is your break-even point: how long it takes your monthly savings to cover your closing costs. If you plan to stay in the home longer than that, refinancing typically makes sense. In most cases, a refinance improves either your monthly payment or your total interest, not both, depending on how your new rate and term compare to your current loan.
According to research, 87% of borrowers in 2025 paid more than the most competitive rate available to them, at an average cost of $3,343 a year. A common industry guideline holds that lowering your rate by at least 0.75 percentage points typically offsets standard closing costs through monthly savings. Getting quotes from at least three lenders, rather than refinancing automatically with your current one, is the step most likely to close that gap.
Lenders generally look for a credit score of at least 620, though the best rates go to borrowers above 780. Most lenders want your total debt-to-income ratio at 43% or below, including the new mortgage payment, and prefer at least 20% equity in the home to offer the best rates and avoid additional mortgage insurance.
A fiduciary financial advisor can help you weigh a refinance against your other financial priorities, including whether a cash-out refinance, home equity loan, or HELOC better fits your goals. Matching with an advisor is free and comes with no pressure to commit.
100% free · No obligation · No cold calls
