Mortgage Refi Calculator

Introduction: Refinancing a mortgage can be a strategic financial move. The Mortgage Refinance Calculator provided here helps users assess potential savings by refinancing their current mortgage. By comparing the monthly payments and total savings before and after refinancing, individuals can make informed decisions to optimize their mortgage.

Formula: The calculator uses the standard mortgage payment formula to calculate monthly payments for both the current and proposed refinance scenarios. The potential monthly savings and total savings over the loan term are then computed by comparing the two scenarios.

How to Use:

  1. Enter the current loan amount.
  2. Input the current interest rate.
  3. Specify the current loan term in years.
  4. Enter the proposed new interest rate.
  5. Specify the proposed new loan term in years.
  6. Click the “Calculate” button to obtain potential monthly and total savings.

Example: For example, if you have a current loan amount of $200,000, an interest rate of 5%, and a loan term of 30 years, and you are considering refinancing with a new interest rate of 4% and a loan term of 25 years, the calculator will provide an estimate of potential monthly and total savings.


  1. Q: How does refinancing result in savings?
    • A: Refinancing at a lower interest rate or shorter loan term can reduce monthly payments and result in lower total interest paid.
  2. Q: Is there a specific threshold for considering refinancing?
    • A: It varies, but generally, a reduction of at least 1% in interest rate is considered beneficial.
  3. Q: Does the calculator consider closing costs and fees?
    • A: No, the calculator focuses on potential savings from changes in interest rates and loan terms. Closing costs should be considered separately.
  4. Q: Can I input different loan terms for the current and new scenarios?
    • A: Yes, you can customize the loan terms to compare different scenarios.
  5. Q: Are the results guaranteed savings?
    • A: No, the results are estimates. Actual savings may vary based on individual circumstances and market conditions.

Conclusion: The Mortgage Refinance Calculator is a valuable tool for individuals exploring opportunities to optimize their mortgage payments. By assessing potential monthly and total savings, users can make informed decisions when considering refinancing options.

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