Refinance calculator
Compare the mortgage you have with the mortgage you would replace it with.
Rate-and-term refinances, cash-out refinances, shorter terms, and payment reductions can all produce very different outcomes. The useful comparison is not simply old rate versus new rate.
The comparison should answer
What is the current mortgage balance and payment?
How much cash is being taken out?
Will closing costs be financed?
What will the new loan amount and LTV become?
How do the two loan balances compare in 1, 3, 5, and 10 years?
Does the lower payment actually create a better long-term result?
Refinance analysis
Start with the mortgage you actually have.
A refinance only makes sense in comparison with the mortgage you would otherwise keep. Enter the current balance, rate, remaining term, home value, and payment details first.
Current mortgage
Proposed refinance
Current P&I
$4,030/mo
New P&I
$3,719/mo
Current LTV
70.6%
New LTV
72.0%
Current mortgage
Current balance
$600,000
Current LTV
70.6%
Current housing payment
$5,055/mo
Cash received
$0
Proposed refinance
New loan amount
$612,000
New LTV
72.0%
New housing payment
$4,744/mo
Cash-out requested
$0
Monthly payment effect
$311/mo lower
Simple closing-cost recovery from payment savings: approximately month 39.
What happens over time?
Compare the mortgage balances—not just the payments.
A refinance can lower the monthly payment while also resetting the amortization schedule or increasing the loan balance. This table keeps those effects visible.
| Horizon | Keep Current Loan | New Refinance | New Balance Difference | Payment Cash-Flow Difference |
|---|---|---|---|---|
| 1 year | $591,897 Interest paid: $40,252 | $604,658 Interest paid: $37,281 | +$12,761 | $3,732 lower payments |
| 3 years | $573,960 Interest paid: $119,025 | $588,558 Interest paid: $110,427 | +$14,599 | $11,197 lower payments |
| 5 years | $553,437 Interest paid: $195,213 | $570,365 Interest paid: $181,480 | +$16,928 | $18,662 lower payments |
| 10 years | $488,244 Interest paid: $371,796 | $513,856 Interest paid: $348,085 | +$25,613 | $37,323 lower payments |
Home value is held constant in this balance comparison so the effect of the financing change is easier to see. Actual property value can rise or fall.
Long-term financing effect
Interest remaining on current loan
$705,592
Interest over new refinance term
$726,688
Difference
$21,096 more
Lifetime interest comparisons are especially sensitive to resetting a shorter remaining mortgage into a new 30-year term. A lower monthly payment can still create more long-term interest if the repayment period is extended.
Educational scenario only
This calculator does not include every refinance cost, escrow refund, prepaid item, tax effect, mortgage-insurance rule, VA/FHA/USDA program fee, property-value change, subordinate lien, lender credit, or qualification factor. Actual mortgage pricing and eligibility require formal review.