Mortgage Refinance Calculator
Refinance calculators fail when they show only the new payment. This layout expects you to carry balance forward, reset or keep term, and account for fees—closer to how a refi actually behaves.
Quick answer
Input current balance as the new loan amount (cash-out aside), new rate, new term, and fees. You get a fresh amortizing payment and a baseline for savings math.
For a related estimate, see 20 Percent Down Calculator.
Explore further: Biweekly Mortgage Calculator · Closing Cost Calculator
How to use this calculator
- Pull payoff balance: Use the lender payoff quote or recent statement ending balance.
- Choose term intentionally: 30-year refi lowers payment; 15-year cuts total interest if you can afford it.
- Add escrows if comparing “old bill” to “new bill”: Escrow changes can mask true P&I savings—compare P&I when isolating rate impact.
What moves the payment
Monthly payment on a fixed-rate amortizing loan is driven by principal, APR, and term. Extra principal reduces balance faster; biweekly schedules effectively add one extra payment per year in many setups. Refinance math adds closing costs and resets amortization—break-even is months of savings versus upfront cost.
Explore further: Debt To Income Calculator · Down Payment Calculator
Real-world example
- Example: $285k balance, 6.5% → 6.0%, new 30-year: Payment often drops a few hundred per month; total interest depends on how many years you keep the loan (illustrative).
Explore further: Home Affordability With Taxes · Home Loan Calculator
What this means
Years 1–10 on a 30-year loan are interest-heavy: most of your payment is interest, so rate cuts move the needle fast. Resetting term for a lower payment can still raise lifetime interest—compare total interest on the same payoff horizon, not just the first payment.
FAQ
What about cash-out refinance?
Loan amount rises—payment and LTV change. Model cash-out as higher principal and include purpose of funds in your budget.
Is this a loan commitment?
No. Outputs are educational estimates. Final payments, APR, and fees come from your lender’s disclosures.
Why does my amortization schedule differ slightly?
Rounding, day-count conventions, and first-payment timing shift pennies. Use the schedule for directionally correct totals.