Refinance Calculator

Use our refinance calculator to see if you should refinance your mortgage. Enter the details of your current home loan, along with details of a new loan, to estimate your savings and see if refinancing can help you meet your financial goals.




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Refinance Calculator Help

"Should I refinance?" is a question many homeowners ask, especially when rates are low. Our mortgage refinance calculator can help you decide whether refinancing makes sense for your personal situation. Here's the info you need to enter into the refinance calculator, plus some helpful information about your results:

Loan Amount

Enter the remaining balance of your current loan, and the balance of your new loan. The new loan balance can be lower or higher if you'd like to pay down the principal or take cash out.

Interest Rate

"New interest rate" is pre-filled with today's average 30-year fixed rate. To get an interest rate customized for your situation


Your term is the length of time you choose to pay off your loan (e.g., 30 years, 20 years, 15 years, etc.). Enter the term of your current loan, then choose a new term for your new loan.

Origination Year

Enter the year you got your current loan. Our refinance calculator takes into account the year that you would have paid off your original loan to better calculate your savings over time.

Refinance Fees

Like all home loans, a refinance loan requires closing costs to pay for things like the loan origination fee, title and appraisal. You can roll the fees into the new loan under "Advanced."

Cash Out

If you have enough equity in your home, you may be able to take cash out during a refinance. You can enter the amount you want to take out under "Cash out" in the Advanced settings.

Full Report

Click "Full Report" in your results to see a full savings summary, mortgage payment breakdowns, total payments, and a full mortgage payment amortization calculation.

Break Even

The break-even point shows how long it'll take for the savings to outweigh the cost. If you plan to sell your home before this time, it likely doesn't make sense to refinance.

Lifetime Savings

The lifetime savings in your results represents the estimated amount of money you'll save on interest over the life of your loan by refinancing to the new interest rate and the new term.

Reasons to Refinance a Mortgage

Trying to decide if you should refinance? Here's a look at some of the most common reasons why you might consider refinancing your mortgage.

Get a Lower Interest Rate
Getting a lower interest rate is by far the most popular reason to refinance a mortgage. If rates are lower than when you got your original loan, refinancing can reduce your monthly mortgage payments. It can also help you save thousands of dollars in interest over the life of your loan.

Switch Your Mortgage Type
When you refinance, you can select a different loan type than the one you currently have in order to reap the benefits of that loan type. For example, if you have an adjustable-rate mortgage (ARM) and the rate is about to increase, you can change to a more stable fixed-rate mortgage. Or if you have an FHA loan and you want to stop paying mortgage insurance, you may be able refinance to a conventional loan without mortgage insurance.

Fund Home Improvements
If you have enough equity in your home, you may be able to do a cash-out refinance. With cash-out refinancing, you refinance your current home loan for more than the amount you currently owe, and keep the extra money to spend on things like a kitchen remodel, new siding, or other home projects you've been dreaming about.

Pay Off Your Loan Faster
In most cases, shortening your loan term will allow you to pay off your principal faster. A shorter term often means you'll have a higher monthly payment, but you'll likely pay less interest over the life of your loan because you are making fewer payments, and because shorter loan term loans (i.e. 15-year fixed) typically have lower interest rates than those with longer term (i.e. 30 year fixed).