Finance tools
Mortgage refinance calculator
Use this free mortgage refinance calculator to compare your current P&I payment with a refinanced loan —see monthly savings, break-even on closing costs, and how resetting the term affects total interest. Choose rate-and-term or cash-out mode, then export CSV or PDF with no signup. For amortization schedules and extra payments on one loan, use our amortization schedule calculator. Estimates are P&I only—not a loan offer or financial advice.
What this mortgage refinance calculator does
A mortgage refinance calculator is an educational tool that compares your current home loan payment with a new fixed-rate P&I payment after refinancing. It estimates monthly savings, break-even on closing costs and discount points, and net interest savings when you change rate, term, or loan balance (including cash-out).
You enter the rate and fees from a Loan Estimate or your own assumptions—no live lender quotes, ZIP-based rates, or credit checks on this page.
Use it to test a should I refinance scenario with your stay horizon and break-even math—not as a substitute for written offers, underwriting, or tax advice.
How to use this refinance calculator
Enter your current loan
From your mortgage statement, enter remaining principal (not original purchase price), years and months left on the loan, and your current note rate as APR. Optional preset chips ($300k · 0.5% rate drop, $100k · 15-year) load example inputs you can edit.
Choose rate-and-term or cash-out
Rate-and-term replaces the loan to change rate or term without taking cash. Cash-out adds an equity withdrawal on top of paying off the old balance—payment rises with the larger loan amount.
Set the new loan and costs
Enter the quoted new rate and term (30, 20, or 15 year chips are shortcuts). Open Closing costs & points for lender fees, discount points in dollars, and whether to roll closing costs into the new loan balance.
Review savings and break-even
Read monthly savings, break-even months, and net interest savings together—do not rely on payment savings alone if the new term is longer than time remaining. Export CSV or PDF to save the scenario.
Start from your mortgage statement for remaining balance and time left—not the original 30-year term unless you still have that many years remaining.
Open Closing costs & points to paste fees from a Loan Estimate, or tap Apply 2% of new loan as a quick planning default.
Match term to your goal
To see mostly rate effect, set the new term close to your remaining years. A 30-year new term with only 20 years left often lowers payment but can increase total interest—the calculator warns when the new term extends past time remaining.
Understanding your results
| Output | Meaning |
|---|---|
| Monthly savings | Current payment minus new payment (can be negative if the new loan costs more per month) |
| Break-even | Upfront costs ÷ monthly savings when savings > 0; shown as months/years or N/A |
| Interest left (current path) | Total interest if you kept the current loan for the remaining term |
| Total interest (new loan) | Interest over the full new term on the new balance |
| Net interest savings | (Interest left − total interest new) − upfront costs; can be negative when the term resets longer |
After you run a scenario, the results panel shows side-by-side P&I payments and a savings summary. The table below matches the labels in the export and on screen.
Break-even is a tenure test: it asks whether payment savings eventually repay closing costs and points paid in cash. It does not count interest saved or lost over the life of either loan. Net interest savings is the broader lifetime picture after those upfront fees.
For official consumer guidance, see the CFPB on refinancing and compare written Loan Estimates from lenders.
Rate-and-term vs cash-out refinance
Both modes use the same payment math. The difference is whether the new loan amount is roughly your payoff balance or also includes cash you take from equity. Select the mode on the calculator rail before you enter the new loan.
For a cash-out refinance calculator workflow, choose Cash-out and enter how much you want to withdraw—payment and total interest usually rise versus rate-and-term at the same rate.
Rate-and-term
Replace the loan to lower the rate or change the term without taking cash.
New loan amount ≈ remaining balance, plus any closing costs you choose to finance.
Cash-out
Borrow more than you owe and receive the difference in cash, secured by home equity.
Payment and total interest usually rise versus rate-and-term at the same rate—compare to a HELOC calculator for flexible draws.
Closing costs and mortgage points
Refinances often cost about 2% to 5% of the new loan amount in lender and third-party fees. Common line items include appraisal, credit report, title and settlement, recording, and lender origination—your Loan Estimate lists them separately.
Use Apply 2% of new loan as a planning shortcut, then replace the dollar amount with your actual quote. Discount points are optional upfront fees paid to reduce the rate; enter them in dollars. Points may be tax-deductible in some cases—ask a tax professional, not this tool.
If you roll closing costs into the loan, payment and total interest rise because you borrow more—toggle Roll closing costs into the new loan to model that choice.
Worked example: rate drop with a longer term
| Metric | Approximate value |
|---|---|
| Current P&I payment | $2,297/mo |
| New P&I payment | $2,023/mo |
| Monthly savings | $274/mo |
| Upfront costs | $8,000 |
| Break-even | ~30 months |
| Net interest savings | Negative (term extended) |
With the calculator’s default inputs—$320,000 remaining balance, 24 years left at 7%, refinancing into a 30-year loan at 6.5% with $8,000 closing costs paid at closing—you get roughly the results below. Numbers are P&I only and rounded for reading.
Payment drops because the rate is lower and the amortization clock resets to 30 years—even though only 24 years remained. That is why net interest savings can be negative while monthly savings look attractive. Try matching the new term to your remaining time (for example 24 years) to isolate the rate effect.
When refinancing may not help
A lower monthly payment does not always mean you come out ahead financially. Resetting to a longer term can increase total interest even when the rate drops—see the default worked example where net interest savings turn negative.
Refinancing may also disappoint if you plan to move or pay off before break-even, if your new payment is higher (shorter term or cash-out), or if you mainly need cash and a HELOC would fit better for ongoing or flexible draws.
Run scenarios with your realistic stay length and compare Loan Estimates—this calculator does not model tax deductions for points or opportunity cost of cash paid at closing.
Limitations
Estimates cover principal and interest only—not property taxes, homeowners insurance, HOA dues, escrow, or PMI. ARM, FHA Streamline, VA IRRRL, and other product-specific rules are out of scope for v1.
Rates and fees are what you enter—they are not live market quotes from lenders, and this page is not a loan application or offer. Credit score, LTV, and occupancy can change pricing on real offers.
For buying vs renting with taxes and maintenance, use the rent vs buy calculator. For PMI on a new purchase or refi with low equity, see the PMI calculator.
Educational US mortgage model
Fixed-rate P&I math only. Not tax, legal, or personalized financial advice. Compare formal Loan Estimates and Closing Disclosures before you sign.
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Frequently asked questions about Mortgage refinance calculator
What is a mortgage refinance calculator?
A refinance calculator for home loans compares your current mortgage payment with a new payment after refinancing, using the balance, rate, and term you enter. It helps estimate monthly savings, break-even on closing costs, and whether a lower payment might still cost more interest over time.
This page is a fixed-rate principal and interest (P&I) model—not taxes, insurance, or live lender quotes.
How do I calculate my refinance payment?
Enter the new loan amount: remaining balance, plus any cash-out or financed closing costs if applicable. Add the new interest rate and term in years (30, 20, or 15 are common presets). That produces your refinance payment (P&I) for the scenario.
The calculator uses the same standard fixed-rate monthly payment formula as our amortization schedule calculator.
What is the break-even point for refinancing?
Break-even is when cumulative monthly payment savings equal the upfront costs you paid to refinance (closing costs and discount points paid in cash, not rolled into the loan).
If you sell, move, or pay off before break-even, you may not recover those fees from payment savings alone—pair break-even with net interest savings when the loan term changes.
How do I calculate the refinance break-even point?
Divide upfront costs by monthly payment savings (current payment minus new payment). Example: $6,000 in costs and $150/month savings → about 40 months to break even.
The calculator performs this automatically when savings are positive. If monthly savings are zero or negative, break-even is not meaningful—check whether a shorter term or cash-out is driving the payment up.
What is the 2% rule for refinancing?
The informal 2% rule suggested refinancing when your new rate was at least two percentage points lower than your current rate. It was a rough shortcut when closing costs were high and rate drops were large.
Today many borrowers refinance for smaller drops if they plan to stay long enough to hit break-even on fees. Use this calculator’s break-even and net interest outputs instead of a fixed rule—and compare Loan Estimates from lenders.
How much does it cost to refinance a $100,000 home?
Closing costs often run 2% to 5% of the loan amount—roughly $2,000 to $5,000 on a $100,000 mortgage refinance before optional discount points.
Appraisal, title, recording, and lender fees vary by state. Enter your Loan Estimate in the calculator; Apply 2% of new loan is a planning default only.
How much does it cost to refinance a $300,000 home?
At 2% to 5% of the loan amount, refinance fees often fall near $6,000 to $15,000 on a $300,000 mortgage, plus optional discount points to buy down the rate.
Cash-out refinances may cost more or face stricter equity rules on real offers—this tool models only the dollar fees you enter, not underwriting.
Should I refinance my mortgage?
Whether you should refinance depends on how long you will keep the loan, your closing costs, and whether a lower payment comes from a better rate or a longer term. Use this calculator to test break-even and net interest savings for your stay horizon—not a single yes/no score.
Compare written offers from multiple lenders; this tool does not replace underwriting, appraisal, or your goals (cash flow vs paying off sooner).
What is a cash-out refinance calculator?
A cash-out refinance calculator estimates payment and interest when you replace your mortgage with a larger loan and take part of the equity as cash. The lender pays off the old balance and disburses the difference to you, subject to LTV limits on real offers.
On this page, choose Cash-out mode and enter the cash amount—the new loan balance and P&I payment usually rise versus rate-and-term at the same rate.
How do mortgage points work when refinancing?
Discount points are optional upfront fees—often quoted as a percent of the loan—paid at closing to reduce the interest rate on the new loan. Each point typically buys a lower rate; the trade-off is higher upfront cost and a longer break-even on those fees.
Enter points in dollars in the calculator (not percent). Points paid in cash count toward break-even; points rolled into the loan increase the balance instead.
Will refinancing reset my loan term?
Yes—refinancing starts a new loan with a new amortization schedule. If you had 20 years left but refinance into a 30-year loan, payments may drop while you pay interest longer.
The calculator flags when the new term exceeds time remaining on your current loan—see the worked example for how that can make net interest savings negative while monthly savings look good.
Is this the same as an amortization schedule calculator?
Both use the same fixed-rate payment math. This page is built to compare two loans, estimate refinance break-even, and model cash-out and closing costs.
The amortization schedule calculator goes deeper on one loan—extra payments, crossover dates, and printable schedules.
Can I use this for auto refinance?
This page models home mortgages (balance, term, and P&I compare). It is not a car refinance calculator—auto loans use different amounts, terms, and fees.
For vehicle financing, use our auto loan calculator.
What is the difference between rate-and-term and cash-out refinance?
Rate-and-term refinancing replaces your loan to change the interest rate, the term, or both—without withdrawing cash. The new loan amount is roughly your payoff balance (plus financed closing costs if you choose).
Cash-out refinancing increases the loan balance by the cash you take. Payment and lifetime interest usually exceed a rate-and-term scenario at the same rate because you borrow more principal.
Is this refinance calculator free to use?
Yes—this free refinance calculator runs in your browser with no account, credit pull, or personal information required.
Export a CSV or PDF summary without signing up. Results are educational P&I estimates, not a loan offer from Ordio or any lender.
Why is lifetime savings negative when my payment drops?
A lower monthly payment often comes from a longer amortization—for example refinancing with 20 years left into a new 30-year loan. You pay less per month but may pay more total interest over the full new term than you would by keeping the current loan to payoff.
The calculator’s net interest savings line captures that trade-off after upfront costs. Read it alongside break-even, not payment savings alone.
What are typical closing costs on a refinance?
Many borrowers see 2% to 5% of the new loan amount in lender and third-party fees—origination, appraisal, title, recording, and similar line items on a Loan Estimate—plus optional discount points.
On a $300,000 loan that is often roughly $6,000 to $15,000 before points, but state and lender pricing varies. Use the Closing costs & points panel, try Apply 2% of new loan, then replace with your real estimate.
How accurate is this mortgage refinance estimate?
Accuracy depends on the rates and costs you enter. The engine uses standard fixed-rate P&I math aligned with our amortization calculator—not live rate feeds or lender pricing engines.
It excludes property taxes, insurance, PMI, escrow, and product-specific programs (FHA Streamline, VA IRRRL, ARM). For consumer guidance, see the CFPB owning-a-home resources and compare written Loan Estimates before you apply.