Refinance Mortgage Calculator

Introduction: The Refinance Mortgage Calculator is a valuable tool for homeowners considering refinancing. By comparing your current mortgage terms with potential new terms, you can assess potential savings and make informed decisions about refinancing.

Formula: The calculator uses the loan amount, interest rate, and loan term to calculate the monthly payment for both the current mortgage and the potential new mortgage. The monthly savings are then calculated by finding the difference between the two payments.

How to Use:

  1. Enter the current loan amount in the “Current Loan Amount” field.
  2. Specify the current interest rate as a percentage in the “Current Interest Rate” field.
  3. Provide the current loan term in years using the “Current Loan Term” field.
  4. Enter the new interest rate as a percentage 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 reveal the estimated new monthly payment.

Example: Consider a scenario where you currently have a $250,000 mortgage with a 30-year term and a 5% interest rate. You’re exploring refinancing with a new interest rate of 3.5% and a reduced term of 15 years. Input these values into the calculator and click “Calculate” to determine the estimated new monthly payment and potential savings.


  1. Q: What is mortgage refinancing?
    • A: Mortgage refinancing is the process of replacing an existing mortgage with a new one, often to secure a better interest rate or terms.
  2. Q: How does the Refinance Mortgage Calculator work?
    • A: The calculator compares the current and potential new mortgage payments to determine the potential monthly savings when refinancing.
  3. Q: What factors should I consider when refinancing?
    • A: Factors include interest rates, loan terms, closing costs, and your financial goals. Assess potential savings and consider how long you plan to stay in your home.
  4. Q: Can refinancing save me money?
    • A: Yes, refinancing can save money by securing a lower interest rate, reducing monthly payments, or shortening the loan term.
  5. Q: Is there a specific interest rate that justifies refinancing?
    • A: It depends on various factors, but generally, a reduction of at least 1% in interest rate may justify refinancing.
  6. Q: How does the loan term affect refinancing?
    • A: Shortening the loan term can increase monthly payments but may result in long-term interest savings. Lengthening the term may reduce monthly payments but may increase total interest paid.
  7. Q: Are there costs associated with refinancing?
    • A: Yes, there are closing costs associated with refinancing, including appraisal fees, title insurance, and loan origination fees.
  8. Q: Can I refinance multiple times?
    • A: Yes, you can refinance multiple times, but it’s essential to consider costs, potential savings, and your long-term financial goals.
  9. Q: What is the break-even point in refinancing?
    • A: The break-even point is when the savings from refinancing offset the costs. Divide the total closing costs by the monthly savings to determine how long it takes to break even.
  10. Q: How often should I check for refinancing opportunities?
    • A: Regularly monitor interest rates and your financial situation. It’s advisable to consider refinancing when interest rates are significantly lower than your current rate.

Conclusion: The Refinance Mortgage Calculator empowers homeowners to make informed decisions about refinancing. By evaluating potential savings and understanding the impact of new terms and interest rates, individuals can optimize their mortgage to align with their financial goals. Explore refinancing opportunities and take control of your mortgage journey.

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