Home Loan Refinance Calculator

Mortgage refinance comparison

Compare the payment, break-even point, and total cost

Put the loan you have beside the refinance you are considering. The result keeps a lower monthly payment separate from long-term savings.

Fixed-rate P&I
Entered rates and costs
Your holding horizon

Released calculationFormula 1.0.0 · no live rate or lender offer

Inputs

Build one refinance scenario

Use a payoff quote and lender figures when available.

Step 1

Refinance type

Rate-and-term replaces the current balance. Cash-out also adds the gross cash you want to borrow.

Current mortgage

These three values calculate the P&I payment you are keeping.

Current payoff balanceUse a recent payoff amount if you have one.

Current interest rateEnter the fixed note rate, not APR.

Remaining loan term25 years remaining. Enter whole months.

Proposed refinance

Enter one quote or planning scenario; no rate is fetched.

New interest rateUse the fixed note rate from the offer you are comparing.

New loan term30 years. A longer term can lower payment but raise total interest.

Costs & time horizon

Include every entered fee once, then choose how long to compare.

Estimated closing costsInclude lender, appraisal, title, points, and other known fees.

Comparison horizon5 years. Try the time until you may sell, move, or refinance again.

How will closing costs be paid?

The comparison counts the same closing costs either way; this choice determines whether they also increase the new principal.

Results

Your refinance snapshot

Monthly payment, break-even, and cost are shown separately.

Ready

Bottom line

Lower payment, higher full-term cost

Monthly P&I decreases by $322.25, while modeled full-term financing cost is higher by $11,525.68.

New monthly P&I$1,703.37Taxes, insurance, PMI, and HOA excluded

Monthly P&I decreases$322.25

Payment break-even18.62 monthsClosing costs ÷ positive monthly P&I savings

Estimated closing costs$6,000.00Paid up front

5 years horizonSave $7,639.95Interest and entered closing costs through the horizon

Monthly principal & interest

Keep current$2,025.62

Refinance$1,703.37

Side by side

Current vs. refinance

Measure	Current	Refinance
Monthly P&I	$2,025.62	$1,703.37
Loan term	25 years	30 years
Full-schedule interest + costs	$307,686.45	$319,212.12
Balance at 5 years	$271,686.49	$277,381.81

More result details

New loan principal: $300,000.00
Cash due for entered costs: $6,000.00
Annual P&I savings: $3,867.05

Term trade-off

Payment is not the whole decision

Full-schedule financing cost

Current remaining interest$307,686

New interest + closing costs$319,212

A longer replacement term can reduce the required payment while leaving a larger balance or adding interest over the full schedule.

Year-by-year viewAnnual comparison through your horizon

Time	Current balance	Refi balance	Current interest	Refi interest + costs
Today	$300,000.00	$300,000.00	$0.00	$6,000.00
1 year	$295,046.70	$295,958.73	$19,354.16	$22,399.14
2 years	$289,761.67	$291,689.50	$38,376.59	$38,570.31
3 years	$284,122.70	$287,179.46	$57,045.07	$54,500.67
4 years	$278,106.07	$282,415.01	$75,335.90	$70,176.63
5 years	$271,686.49	$277,381.81	$93,223.78	$85,583.83

Rate-and-term replacement test

Compare a Home Refinance Over the Time You Expect to Keep It

A refinance replaces an existing mortgage with a new note. Compare both loans from the same decision date, include every financed and cash-paid cost, and measure payment, balance, and cumulative cash difference through a realistic holding horizon.

Key ideas · Rate-and-term replacement test

Key ideas in Compare a Home Refinance Over the Time You Expect to Keep It

New principal: old payoff + costs financed + cash out − cash paid toward closing
Break-even caution: lower monthly payment alone can hide a longer term or larger balance
Transaction boundary: The result is not a rate quote, approval, appraisal, or recommendation to refinance.

Home refinance comparison: anchor the old loan today
Use current principal, note rate, remaining term, required principal-and-interest payment, and a dated payoff quote—not the original mortgage amount. Record any existing mortgage insurance and escrow separately. The payoff can include accrued interest and valid charges beyond principal. Starting both paths on the same date prevents past interest from being counted as a future refinance cost and creates a fair balance comparison at the selected move, sale, or payoff horizon.
Home refinance comparison: construct the replacement note and cash flow
Enter the offered rate, term, points, lender-controlled costs, third-party charges, credits, cash paid, and any amount rolled into principal. CFPB guidance explains that a so-called no-closing-cost refinance commonly uses a higher rate or adds costs to the loan; it does not make charges disappear. Keep cash-out separate so additional borrowing is not misreported as savings. An adjustable rate, temporary buydown, or interest-only feature needs its actual changing-payment path.
Home refinance comparison: evaluate more than monthly break-even
Cumulative closing cost divided by monthly payment reduction is a useful checkpoint, but it ignores balance differences and can reward restarting a long term. At several horizons, compare total cash paid, remaining principal, mortgage insurance, and net cash received. Compare any servicer-issued recast quote separately as a no-new-note principal-curtailment alternative, use the APR Calculator for a fee-inclusive percentage scenario, and the Amortization Calculator to audit each schedule.
Home refinance comparison: stress rate, tenure, and ownership costs
Test an earlier move, delayed break-even, higher insurance, appraisal shortfall, and a rate that is not locked. A lower required payment can arise from extending the payoff date rather than cheaper credit. Place the replacement payment inside the complete recurring household budget with the Home Loan Affordability Calculator before assuming that monthly relief creates durable capacity. Preserve reserves instead of assuming all cash should buy points or reduce principal. Tax treatment, credit impact, title requirements, and future property value depend on facts outside this model. CFPB cash-out research describes observed aggregate debt behavior and cannot predict an individual household's outcome.
Home refinance comparison: reconcile actual replacement disclosures
Request Loan Estimates for equivalent replacement products and compare rate, APR, projected payments, costs, credits, cash to close, and risky features. Before signing, reconcile the Closing Disclosure and confirm the payoff process for the old lien. This calculator does not access lender pricing, decide eligibility, verify appraisal or title, lock a rate, or determine whether refinancing is suitable. It organizes declared offers so the decision can be reviewed over a stated horizon rather than from an advertisement's payment alone.

Compare a Home Refinance Over the Time You Expect to Keep It: A refinance replaces an existing mortgage with a new note. Compare both loans from the same decision date, include every financed and cash-paid cost, and measure payment, balance, and cumulative cash difference through a realistic holding horizon.

Home refinance comparison: anchor the old loan today

Use current principal, note rate, remaining term, required principal-and-interest payment, and a dated payoff quote—not the original mortgage amount. Record any existing mortgage insurance and escrow separately. The payoff can include accrued interest and valid charges beyond principal. Starting both paths on the same date prevents past interest from being counted as a future refinance cost and creates a fair balance comparison at the selected move, sale, or payoff horizon.

Home refinance comparison: construct the replacement note and cash flow

Enter the offered rate, term, points, lender-controlled costs, third-party charges, credits, cash paid, and any amount rolled into principal. CFPB guidance explains that a so-called no-closing-cost refinance commonly uses a higher rate or adds costs to the loan; it does not make charges disappear. Keep cash-out separate so additional borrowing is not misreported as savings. An adjustable rate, temporary buydown, or interest-only feature needs its actual changing-payment path.

Home refinance comparison: evaluate more than monthly break-even

Cumulative closing cost divided by monthly payment reduction is a useful checkpoint, but it ignores balance differences and can reward restarting a long term. At several horizons, compare total cash paid, remaining principal, mortgage insurance, and net cash received. Compare any servicer-issued recast quote separately as a no-new-note principal-curtailment alternative, use the APR Calculator for a fee-inclusive percentage scenario, and the Amortization Calculator to audit each schedule.

Home refinance comparison: stress rate, tenure, and ownership costs

Test an earlier move, delayed break-even, higher insurance, appraisal shortfall, and a rate that is not locked. A lower required payment can arise from extending the payoff date rather than cheaper credit. Place the replacement payment inside the complete recurring household budget with the Home Loan Affordability Calculator before assuming that monthly relief creates durable capacity. Preserve reserves instead of assuming all cash should buy points or reduce principal. Tax treatment, credit impact, title requirements, and future property value depend on facts outside this model. CFPB cash-out research describes observed aggregate debt behavior and cannot predict an individual household's outcome.

Home refinance comparison: reconcile actual replacement disclosures

Request Loan Estimates for equivalent replacement products and compare rate, APR, projected payments, costs, credits, cash to close, and risky features. Before signing, reconcile the Closing Disclosure and confirm the payoff process for the old lien. This calculator does not access lender pricing, decide eligibility, verify appraisal or title, lock a rate, or determine whether refinancing is suitable. It organizes declared offers so the decision can be reviewed over a stated horizon rather than from an advertisement's payment alone.

Important limitations

Home Loan Refinance Calculator uses the rates, dates, fees, and assumptions entered or explicitly cited by this formula. It does not replace a current quote, eligibility decision, filing calculation, contract, or professional financial advice.

This formula passed its registered engineering tests and is published under an explicit site-owner policy authorization. No independent expert, QA, editorial, legal, or third-party review is claimed. Verify consequential results with a qualified professional.

This subject may affect health, finance, tax, legal, or other consequential decisions. It has not received an independent domain-expert review; consult a qualified professional before relying on it.

Rate-and-term replacement test

Compare a Home Refinance Over the Time You Expect to Keep It

Key ideas · Rate-and-term replacement test

Key ideas in Compare a Home Refinance Over the Time You Expect to Keep It

New principal: old payoff + costs financed + cash out − cash paid toward closing
Break-even caution: lower monthly payment alone can hide a longer term or larger balance
Transaction boundary: The result is not a rate quote, approval, appraisal, or recommendation to refinance.

Home refinance comparison: anchor the old loan today
Use current principal, note rate, remaining term, required principal-and-interest payment, and a dated payoff quote—not the original mortgage amount. Record any existing mortgage insurance and escrow separately. The payoff can include accrued interest and valid charges beyond principal. Starting both paths on the same date prevents past interest from being counted as a future refinance cost and creates a fair balance comparison at the selected move, sale, or payoff horizon.
Home refinance comparison: construct the replacement note and cash flow
Enter the offered rate, term, points, lender-controlled costs, third-party charges, credits, cash paid, and any amount rolled into principal. CFPB guidance explains that a so-called no-closing-cost refinance commonly uses a higher rate or adds costs to the loan; it does not make charges disappear. Keep cash-out separate so additional borrowing is not misreported as savings. An adjustable rate, temporary buydown, or interest-only feature needs its actual changing-payment path.
Home refinance comparison: evaluate more than monthly break-even
Cumulative closing cost divided by monthly payment reduction is a useful checkpoint, but it ignores balance differences and can reward restarting a long term. At several horizons, compare total cash paid, remaining principal, mortgage insurance, and net cash received. Compare any servicer-issued recast quote separately as a no-new-note principal-curtailment alternative, use the APR Calculator for a fee-inclusive percentage scenario, and the Amortization Calculator to audit each schedule.
Home refinance comparison: stress rate, tenure, and ownership costs
Test an earlier move, delayed break-even, higher insurance, appraisal shortfall, and a rate that is not locked. A lower required payment can arise from extending the payoff date rather than cheaper credit. Place the replacement payment inside the complete recurring household budget with the Home Loan Affordability Calculator before assuming that monthly relief creates durable capacity. Preserve reserves instead of assuming all cash should buy points or reduce principal. Tax treatment, credit impact, title requirements, and future property value depend on facts outside this model. CFPB cash-out research describes observed aggregate debt behavior and cannot predict an individual household's outcome.
Home refinance comparison: reconcile actual replacement disclosures
Request Loan Estimates for equivalent replacement products and compare rate, APR, projected payments, costs, credits, cash to close, and risky features. Before signing, reconcile the Closing Disclosure and confirm the payoff process for the old lien. This calculator does not access lender pricing, decide eligibility, verify appraisal or title, lock a rate, or determine whether refinancing is suitable. It organizes declared offers so the decision can be reviewed over a stated horizon rather than from an advertisement's payment alone.