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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.

HorizonKeep Current LoanNew RefinanceNew Balance DifferencePayment 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.

Save your scenario

Email or text these calculator results to yourself.

Keep the numbers for later, reopen the calculator, and continue comparing before you make a mortgage decision.