May 7, 2021
Mortgage Refinance Calculator | Should You Refi?

Mortgage Refinance Calculator | Ought to You Refi?



Refinance Calculator

Calculator developed by

Michael Jensen

Use our Mortgage Refinance Calculator to find out how a lot cash it can save you by refinancing. This calculator compares your new mortgage cost to your present cost in addition to your present mortgage stability to your new mortgage that will help you determine if it is sensible to refinance. Use our calculator to judge a number of eventualities primarily based on totally different rates of interest, mortgage quantities, applications and shutting charges. This lets you perceive the advantages and prices of refinancing your mortgage that will help you determine if it makes monetary sense for you.

Watch our Mortgage Refinance Calculator “How To” video


Choose the mortgage sort on your new (refinanced) mortgage — Fastened Fee, Adjustable Fee Mortgage or Curiosity Solely

Please Choose New Mortgage Kind

The present rate of interest for a 30 12 months fastened charge mortgage is roughly 3.500%

Please Choose Fee of New Mortgage

The size, in years, of your new mortgage. The most typical mortgage time period is 30 years

Please Choose Time period (Years)

Submit Legitimate Data to Examine Lenders and Save Cash!While you present legitimate private data we might join you with lenders which lets you examine mortgage proposals and discover the mortgage that’s best for you. Click on calculator for a model of this calculator that doesn’t require private data


Please Enter Your First & Final Title

Please Enter a Legitimate First Title

Please Enter a Legitimate Final Title


Please Enter Your Cellphone Quantity

Please Enter a Legitimate Cellphone

Please Enter Your E-mail

Please Enter a Legitimate E-mail

Your credit score rating to the most effective of your data

Please Choose Credit score Rating

By clicking the button above, you agree to permit FREEandCLEAR to attach you with lenders or different third events and that FREEandCLEAR and different events might contact you on the e mail handle and cellphone quantity you offered, even when your quantity seems on a Do Not Name Registry or Record. Your consent is just not a situation to work with a lender or to qualify for a mortgage. Please evaluation our Privateness Coverage for extra info. NMLS: 357085


Month-to-month mortgage cost primarily based on new mortgage phrases

Whole curiosity expense you’ll pay over the lifetime of your new mortgage primarily based on the phrases of your refinancing

Relying in your current mortgage stability, the quantity of your new mortgage and the quantity of closing prices, you might be able to maintain among the proceeds if you refinance your mortgage. The worth of your property and LTV ratio may also decide your skill to take money out if you refinance. In some circumstances, you might also be required to contribute cash to cowl closing prices

Financial savings from Refinancing

The amount of cash you save (or extra expense you incur) monthly by refinancing

The period of time it’s going to take you to recuperate the non-recurring closing prices required to refinance your mortgage primarily based in your month-to-month mortgage cost financial savings

Thanks for submitting your calculation. Now we have additionally offered your contact data to as much as 4 lenders so that you could discover the mortgage that’s best for you. Proceed to make use of the calculator and carry out as many calculations as you want as your contact data is barely submitted as soon as.

How Our Mortgage Refinance Calculator Works

The choice to refinance is impacted by a number of elements together with your new rate of interest, mortgage program and size. Our calculator makes use of the next inputs that will help you decide for those who ought to refinance your mortgage:

Present Mortgage Cost. That is your present month-to-month cost. Our calculator compares your present cost together with your new cost.

Present Mortgage Stability. That is your excellent principal mortgage stability or how a lot you presently owe your lender to payoff your mortgage. Please be aware that that is your present mortgage stability and never your authentic mortgage quantity.

New Mortgage Quantity. The is the quantity of your new mortgage. Your new mortgage could also be equal to or larger than your present mortgage stability relying in your refinance targets.

New Mortgage Kind. That is the mortgage program on your new mortgage: fastened charge, adjustable charge or curiosity solely. Our Mortgage Refinance Calculator lets you perceive what occurs for those who change applications if you refinance. For instance, you’ll be able to examine a set charge mortgage to an adjustable charge mortgage (ARM) or curiosity solely mortgage to find out how your month-to-month cost and potential financial savings adjustments.

Curiosity Fee for New Mortgage. That is the mortgage charge on your new mortgage. Reducing your charge can scale back your month-to-month cost.

New Mortgage Time period. That is the size of your new mortgage. Refinancing right into a shorter mortgage — for instance from a 30 12 months right into a 15 12 months mortgage — might improve your month-to-month cost however scale back your complete curiosity expense over the lifetime of your mortgage.

Closing Prices. Our calculator additionally elements in closing prices that are vital consideration when you find yourself deciding for those who ought to refinance. Excessive closing prices can doubtlessly negate the good thing about decreasing your month-to-month cost.

Our calculator lets you perceive the next details about refinancing your mortgage:

New Mortgage Cost. That is your new cost primarily based in your mortgage quantity, mortgage program, rate of interest and mortgage size.

Whole Curiosity Expense for New Mortgage. That is how a lot cash you spend on curiosity over the lifetime of your new mortgage. Whole curiosity expense is set by your mortgage charge in addition to your mortgage time period.

Month-to-month Cost Financial savings or Price. Our calculator compares your new month-to-month cost to your present cost to find out your month-to-month financial savings or price. The upper your month-to-month financial savings, the larger the profit you acquire by refinancing.

Months to Recuperate Closing Prices. Our calculator divides your month-to-month cost financial savings into your closing prices to point out you the way lengthy it takes to recuperate your prices, which is also called the breakeven level. For instance, for those who save $200 in your new month-to-month cost and pay $2,000 in closing prices, it takes you ten months to breakeven ($2,000 / $200 monthly = 10 months to recuperate your prices). If it takes too lengthy to breakeven then refinancing is probably not the precise possibility, particularly if you’ll proceed proudly owning your private home for a comparatively brief time frame.

Key Mortgage Refinance Advantages and Issues


Refinance to Decrease Your Mortgage Fee

As a rule of thumb, your new mortgage charge must be at the very least .750% decrease than your present rate of interest if you’re refinancing to cut back your charge and month-to-month mortgage cost.  Reducing your mortgage charge by at the very least .750% ought to allow you to recuperate your closing prices inside 30 months.  A smaller discount in rate of interest might make monetary sense for debtors contemplating a “no-cost” refinance however a “no price” refinance may very well price debtors extra in the long term since you pay the next rate of interest than you do for those who pay customary closing prices.  When deciding if it is sensible to refinance, debtors ought to contemplate the rate of interest, mortgage cost financial savings, closing prices and complete curiosity expense over the lifetime of the mortgage.  Use our Mortgage Refinance Calculator to grasp how a lot cash it can save you by decreasing your mortgage charge.


Refinance to Shorten Your Mortgage Size

Among the best causes to refinance is to shorten the size of your mortgage as a result of it lets you each decrease your rate of interest and save hundreds of {dollars} in curiosity expense over the lifetime of your mortgage.  The flip aspect of a shorter mortgage time period is that your month-to-month mortgage cost will increase since you repay your mortgage over a shorter time frame.  Debtors ought to verify with lenders to ensure they’ll afford the next month-to-month cost as a result of a shorter mortgage presents vital monetary advantages.  For instance, for a $250,000 mortgage, primarily based on present rates of interest debtors can save roughly $100,000 in complete curiosity expense over the time period of the mortgage by deciding on a 15 12 months mortgage as in comparison with a 30 12 months mortgage.  Our Mortgage Refinance Calculate lets you examine the month-to-month cost and complete curiosity expense for loans with totally different lengths.


Refinance Your ARM or Curiosity Solely Mortgage Right into a Fastened Fee Mortgage

In case you have an adjustable charge mortgage (ARM) or curiosity solely mortgage and are frightened about a rise in rates of interest and your month-to-month mortgage cost then refinancing into a set charge mortgage could also be a sound monetary determination.  Though the rate of interest and month-to-month cost on a set charge mortgage could also be greater within the close to time period, you could save a major amount of cash in the long run if rates of interest improve.  Past the long run monetary profit, a set charge mortgage supplies larger certainty than an adjustable charge mortgage or curiosity solely mortgage.  The additional peace of thoughts could also be extra worthwhile to debtors than the monetary financial savings and justify the price of refinancing into a set charge mortgage.  With our Mortgage Refinance Calculator you’ll be able to consider for those who ought to change your mortgage program if you refinance.


Draw back of Extending Your Mortgage Time period When You Refinance

One of many greatest errors debtors make after they refinance is to switch their present mortgage with a brand new mortgage that’s the similar size.  By changing your current mortgage with a brand new mortgage that’s the similar size you’re successfully extending the size of your authentic mortgage.   For instance, if a borrower is 10 years right into a 30 12 months mortgage and refinance with a brand new 30 12 months mortgage she or he is successfully making the unique 30 12 months mortgage a 40 12 months mortgage.  Extending the size of a mortgage signifies that the borrower is required to pay hundreds of {dollars} extra in complete curiosity expense.  There are various sound causes to refinance your mortgage together with to decrease your month-to-month cost and take money out of your private home however it’s best to examine any monetary profit to the additional price of extending your authentic mortgage.


Do not Neglect About Closing Prices

Closing prices can run hundreds of {dollars} if you refinance and are an vital consideration for potential debtors.  You might be tempted by a decrease mortgage charge and month-to-month cost however excessive closing prices might outweigh these advantages.  Alternatively, many lenders supply no price refinances however cost you the next mortgage charge.  On this case you pay little or no closing prices however the greater charge can considerably improve your complete curiosity expense.  Whether or not it’s excessive closing prices or no prices in any respect, it’s best to contemplate the monetary penalties of those bills if you determine for those who ought to refinance.


Present Refinance Mortgage Charges in Sofia, Sofia-Capital as of February 28, 2021

View All Lenders


Whereas we pleasure ourselves on the standard and breadth of the FREEandCLEAR mortgage calculators please be aware that they need to be used for informational functions solely. Our calculators depend on assumptions by us and inputs and assumptions offered by you, which can be inaccurate. The outputs from our calculators are estimates solely and shouldn’t be used as the only foundation for making any monetary selections. At all times seek the advice of a number of monetary professionals when figuring out the mortgage measurement and program that’s acceptable for you.

Extra FREEandCLEAR Mortgage Assets

Mortgage Guides

Causes to Refinance Your Mortgage

Evaluation the highest causes to refinance your mortgage together with to decrease your rate of interest, scale back your mortgage time period or change your mortgage program

Interest Rates

Refinance Mortgage Charges

Examine mortgage refinance charges and charges from high lenders close to you.  Evaluating a number of lenders is one of the simplest ways to economize if you refinance


Mortgage Refinance Information

Our complete mortgage refinance information takes you thru the refinance course of from begin to fiinsh

Ask a Mortgage Expert

Ask a Mortgage Professional

Bought mortgage questions? We love answering them. Submit your mortgage questions and obtain an informative response inside 24 hours



“Figuring out Whether or not to Refinance.” My Residence by Freddie Mac. Freddie Mac, 2019. Net.

Concerning the calculator developer

Michael Jensen, Mortgage and Finance Guru

Michael is the co-founder of FREEandCLEAR. Michael possesses in depth data about mortgages and finance and has been writing about mortgages for practically a decade. His work has been featured in main nationwide and business publications. Extra about Michael