Mortgage Calculator Interest Only

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Mortgage Refinance Savings Calculator

30 Years Fixed 20 Years Fixed 15 Years Fixed 10 Years Fixed

Refinance Summary

New Monthly Payment:

$0.00

Monthly Savings:

$0.00

Break-Even Point (Months to recover costs):

0 Months

function calculateRefi() { var balance = parseFloat(document.getElementById('loanBalance').value); var currentPay = parseFloat(document.getElementById('currentPayment').value); var newRate = parseFloat(document.getElementById('newRate').value); var termYears = parseInt(document.getElementById('newTerm').value); var costs = parseFloat(document.getElementById('closingCosts').value); if (isNaN(balance) || isNaN(currentPay) || isNaN(newRate) || isNaN(costs)) { alert("Please enter valid numerical values."); return; } // Mortgage Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] var monthlyRate = (newRate / 100) / 12; var numberOfPayments = termYears * 12; var newPayment = 0; if (monthlyRate === 0) { newPayment = balance / numberOfPayments; } else { newPayment = balance * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1); } var savings = currentPay – newPayment; var breakEven = savings > 0 ? Math.ceil(costs / savings) : "N/A"; document.getElementById('resNewPayment').innerText = "$" + newPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resMonthlySavings').innerText = "$" + (savings > 0 ? savings : 0).toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); if (savings <= 0) { document.getElementById('resBreakEven').innerText = "Costs will not be recovered (Payment increased)"; } else { document.getElementById('resBreakEven').innerText = breakEven + " Months (" + (breakEven / 12).toFixed(1) + " years)"; } document.getElementById('refiResults').style.display = "block"; }

How a Mortgage Refinance Savings Calculator Works

Deciding to refinance your home is a major financial move. Our mortgage refinance savings calculator helps you determine if the long-term benefits outweigh the immediate costs of securing a new loan. By comparing your existing monthly payment against a new loan based on current market rates, you can see exactly how much you stand to save each month.

Key Metrics Explained

  • Remaining Loan Balance: The total amount you still owe on your current mortgage. This becomes the principal for your new loan.
  • New Interest Rate: The annual percentage rate (APR) offered by lenders today. Even a 0.5% difference can result in significant savings.
  • Closing Costs: These typically range from 2% to 5% of the loan amount and include appraisal fees, title insurance, and origination fees.
  • Break-Even Point: This is the most critical number. It tells you how many months you must stay in the home for your monthly savings to "pay back" the upfront closing costs.

Example Calculation

If you have a $300,000 balance and your monthly payment is $2,200, but a new 30-year loan at 6.5% drops your payment to $1,896, you save $304 per month. If your closing costs are $6,000, your break-even point is approximately 20 months ($6,000 / $304). If you plan to live in the home for 5 more years, refinancing is a highly profitable move.

When Should You Refinance?

Generally, experts suggest refinancing is worth considering if you can lower your interest rate by at least 0.75% to 1%. However, if you are switching from an Adjustable-Rate Mortgage (ARM) to a Fixed-Rate Mortgage for stability, or if you are shortening your loan term (e.g., from 30 years to 15 years) to pay off the home faster, the "math" changes to favor long-term interest savings over immediate monthly cash flow.

Disclaimer: This calculator provides estimates for informational purposes only. Actual loan terms, closing costs, and interest rates depend on your credit score, lender requirements, and debt-to-income ratio.

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