Mortgage Refinance Closing Cost Calculator

Introduction: When considering mortgage refinancing, it’s essential to understand the financial implications. One crucial aspect is the closing cost associated with the new loan. Our Mortgage Refinance Closing Cost Calculator is a handy tool that helps you estimate your monthly payments and total closing costs, ensuring you make an informed decision.

Formula: To calculate your monthly payment and total closing cost, the calculator uses the following formula:

  1. Calculate the monthly interest rate: (Interest Rate / 12) / 100
  2. Determine the number of payments: Loan Term * 12
  3. Calculate the monthly payment using the formula: Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Payments))
  4. Calculate the total closing cost: Loan Amount * (Closing Cost Percentage / 100)
  5. Calculate the total monthly payment: Monthly Payment + (Total Closing Cost / Number of Payments)

How to Use:

  1. Enter the loan amount you’re considering for refinancing.
  2. Input the annual interest rate as a percentage.
  3. Specify the loan term in years.
  4. Enter the closing cost as a percentage of the loan amount.
  5. Click the “Calculate” button to get the results.

Example: Suppose you’re refinancing a loan amount of $200,000 with an annual interest rate of 4.5%, a loan term of 15 years, and closing costs of 2.5%. After using the calculator, you find that your estimated monthly payment, including closing costs, is $1,480.75.


  1. What is a mortgage refinance closing cost?
    • Closing costs are fees associated with refinancing a mortgage, including loan origination fees, appraisal fees, and title insurance. It’s essential to factor these costs into your refinancing decision.
  2. Why is it important to calculate closing costs when refinancing?
    • Knowing your closing costs helps you understand the total expense of refinancing and whether it’s a financially sound decision.
  3. What factors affect the monthly payment?
    • The loan amount, interest rate, and loan term are the primary factors affecting the monthly payment.
  4. How do I determine the loan term in years?
    • The loan term is typically specified by your lender, but you can discuss different options to choose the term that best suits your financial goals.
  5. Is it better to pay closing costs upfront or roll them into the loan?
    • It depends on your financial situation. Rolling closing costs into the loan might lead to a slightly higher monthly payment but less upfront expense.
  6. Are closing costs tax-deductible?
    • Some closing costs may be tax-deductible; consult a tax professional for guidance.
  7. What happens if I can’t afford the closing costs?
    • You can explore options like no-closing-cost loans, but these might have higher interest rates.
  8. Can I estimate closing costs without a calculator?
    • While possible, using a calculator ensures accuracy and saves time.
  9. Can I refinance with a different lender?
    • Yes, you can choose to refinance with a different lender if they offer better terms.
  10. How often should I consider refinancing?
    • The ideal timing for refinancing depends on market conditions, your financial goals, and how long you plan to stay in your home.

Conclusion: Our Mortgage Refinance Closing Cost Calculator empowers you to make well-informed decisions when considering mortgage refinancing. By understanding your estimated monthly payments and total closing costs, you can determine if refinancing aligns with your financial goals and budget. Use this tool to ensure your financial well-being when making one of the most significant financial decisions of your life.

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