Free Mortgage Refinance Calculator

Introduction: The Free Mortgage Refinance Calculator is a valuable tool for individuals considering refinancing their mortgages. By providing details such as the current loan amount, interest rate, and term, along with the desired new interest rate and term, users can estimate the potential monthly savings that may result from refinancing.

Formula: The calculator determines the estimated monthly savings by calculating the difference between the current monthly payment and the new monthly payment after refinancing. The monthly payment is calculated using the standard mortgage formula:



  • M is the monthly payment.
  • P is the loan amount.
  • r is the monthly interest rate (annual interest rate divided by 12).
  • n is the total number of payments (loan term in years multiplied by 12).

How to Use:

  1. Enter the current loan amount in the “Current Loan Amount” field.
  2. Input the current interest rate in the “Current Interest Rate” field.
  3. Specify the current loan term in years using the “Current Loan Term” field.
  4. Enter the desired new interest rate in the “New Interest Rate” field.
  5. Specify the new loan term in years using the “New Loan Term” field.
  6. Click the “Calculate” button to obtain the estimated monthly savings.

Example: For example, if you have a current loan amount of $200,000, a current interest rate of 4.5%, and a current loan term of 30 years, and you are considering refinancing with a new interest rate of 3.5% and a new loan term of 25 years, the calculator will provide you with the estimated monthly savings.


  1. Q: What is mortgage refinance? A: Mortgage refinance involves replacing an existing mortgage with a new one, usually to secure a lower interest rate or change the loan term.
  2. Q: How does the calculator determine monthly savings? A: The calculator calculates the difference between the current and new monthly mortgage payments to estimate potential savings.
  3. Q: Is refinancing always a good idea? A: It depends on factors such as current interest rates, loan terms, and individual financial goals. Consult with a financial advisor to determine if refinancing is suitable for your situation.
  4. Q: Does the calculator consider closing costs? A: No, the calculator focuses on monthly savings and does not account for closing costs associated with refinancing.
  5. Q: Can the calculator be used for other types of loans? A: While designed for mortgage refinancing, the calculator can be adapted for other loans with similar structures.

Conclusion: The Free Mortgage Refinance Calculator offers a quick and accessible way for individuals to estimate potential monthly savings through mortgage refinancing. While this tool provides valuable insights, it’s essential to consult with mortgage professionals to assess the overall impact of refinancing on your financial situation.

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