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Home Loan Refinance Calculator: Should I Refinance? When Will I Break Even?

Calculator Preferences
Home Loan Refinance Calculator Sign
Home Loan Refinance Calculator

This calculator will estimate your refinance closing costs and calculate the net-consequences of refinancing your home loan at a lower interest rate or different term (with cash out/in options), and tell you how many months you need to stay in your refinanced home in order for the rate savings to offset the cost of the new home loan. Results include a side-by-side payment, cost, LTV, and PMI comparison and a year-by-year interest comparison chart. The Learn tab includes:

  • What does "refinance" mean?
  • Average closing costs calculator.
  • When are savings truly savings?
  • Why refinance a mortgage?
  • Should i refinance my house?
  • How to refinance your house.
Learn More

Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Market value:Market value:Estimated market value:Optional: Estimated market value of home:

Optional: Estimated market value of home:

If you would like to include LTV (Loan to Value) and PMI (Private Mortgage Insurance) into the calculations, enter the estimated market value of your home.

If you're not sure what the market value is, check the property listings in your area to see what similar homes are selling for. If you're not concerned with LTV and PMI, leave the field blank.

Enter as a dollar amount, but without the dollar sign and any commas.

PMI payment:PMI payment:Monthly PMI payment:Optional: Current monthly PMI payment:

Optional: Current monthly PMI payment:

If you entered a market value, and you are making a monthly PMI (private mortgage insurance payment), enter the monthly amount on this line.

If you are not required to make a PMI payment, leave the field blank.

Enter as a dollar amount, but without the dollar sign and any commas.

Existing Mortgage Terms
Entry type:Entry type:Mortgage entry type:Mortgage entries will be based on:

Mortgage entries will be based on:

If you've been making regular scheduled payments, choose Original. Otherwise, if you've already been making extra or unscheduled payments, choose Current. The first four rows will change when you switch between Original and Current terms.

Principal:Original principal:Original home loan amount:Original home loan amount:

Original home loan amount:

Enter the dollar amount of the original home loan (principal borrowed). Enter as a dollar amount, but without the dollar sign and any commas.

Rate:Interest rate:Original annual interest rate:Original annual interest rate:

Original annual interest rate:

Enter the annual percentage rate (APR) of the original house loan. Enter as a percentage, but without the percent sign.

# of years:Number of years:Original term in number of years:Original home loan term in number of years:

Original home loan term in number of years:

Enter the original repayment term of the house loan in number of years.

Pmts made:# payments made:Number of payments already made:Number of house payments already made:

Number of house payments already made:

Enter the number of monthly house payments you have already made on your existing home loan. If you have not made any payments at all, leave blank or enter a zero.

Refinancing Terms
Refi rate:Refinance rate:Refinance rate:Refinance rate:

Refinance rate:

Enter the refinance rate (APR) of the new house loan. Enter as a percentage, but without the percent sign.

Refi years:Refinance years:Refinance term in number of years:Refinance loan term in number of years:

Refinance loan term in number of years:

Enter the refinance loan term of the new house loan in number of years.

Cash out:

Cash out:

If you plan to borrow cash (not recommended) in addition to paying off the existing mortgage balance, enter the cash-out amount in the field on this line, without the dollar sign. Otherwise, leave the field blank.

Cash in:

Cash in:

If you would like to add a lump sum of cash to pay down the principal (perhaps to save you from having to pay PMI), enter the cash-in amount in the field on this line, without the dollar sign. Otherwise, leave the field blank.

Refinance Closing CostsRefinance Closing CostsMortgage Refinance Closing CostsMortgage Refinance Closing Costs
Estimate:Estimate costs:Estimate closing costs:Estimate closing costs:

Estimate closing costs

To have the calculator estimate your closing costs for you, select either None (no closing costs, which is highly unlikely), Low, Medium, or High. Or select None if you would like to enter your own estimates.

Points:

Points:

Enter the points that will be assessed on the new mortgage. Enter as a percentage, but without the percent sign (for .015 or 1.5%, enter 1.5).

Application:Application fee:Mortgage application fee:Mortgage application fee:

Mortgage application fee:

Enter the estimated mortgage application fee ($250 - $300). Enter as dollar amount, but without the dollar sign and any commas.

Appraisal:Appraisal fee:Appraisal fee:Appraisal fee:

Appraisal fee:

Enter the estimated appraisal report fee ($300 - $600). Enter as dollar amount, but without the dollar sign and any commas.

Document:Document fee:Document fee:Document fee:

Document fee:

Enter the estimated document fee ($200 - $500). Enter as dollar amount, but without the dollar sign and any commas.

Legal:Legal fee:Legal fee:Legal fee:
Inspection:Inspection fee:Inspection fee:Inspection fee:

Inspection fee:

Enter the estimated inspection fee ($175 - $300). Enter as dollar amount, but without the dollar sign and any commas.

Survey:Survey fee:Survey fee:Survey fee:

Survey fee:

Enter the estimated survey fee ($125 - $300). Enter as dollar amount, but without the dollar sign and any commas.

Credit report:Credit report:Credit report fee:Credit report fee:

Credit report fee:

Enter the estimated credit report fee ($15 - $30). Enter as dollar amount, but without the dollar sign and any commas.

Title search:Title search:Title search fee:Title search fee:

Title search fee:

Enter the estimated title search fee ($200 - $400). Enter as dollar amount, but without the dollar sign and any commas.

Title insure:Title insurance:Title insurance fee:Title insurance fee:

Title insurance fee:

Enter the estimated title insurance fee ($400 - $800). Enter as dollar amount, but without the dollar sign and any commas.

Recording:Recording fee:Recording fee:Recording fee:

Recording fee:

Enter the estimated recording fee ($25 - $200). Enter as dollar amount, but without the dollar sign and any commas.

Other costs:Other closing costs:Other closing costs:Other closing costs:

Other closing costs:

Enter the total of any other costs that will be assessed for the creation of the new mortgage, such as prepayment penalties, courier fees, etc.. Enter without the dollar sign and any commas).

Add costs?Finance costs?Finance closing costs?Finance closing costs?

Finance closing costs?

If you would like to bundle all of the upfront financing points and fees into the new loan amount, move the switch to the "Yes" position. Otherwise if you will be paying cash for the points and refinancing costs, move the switch to the "No" position.

Results
Current pmt:Current payment:Current monthly payment:Current monthly principal and interest payment:

Current monthly principal and interest payment:

Based on your entries, this is the amount of your current monthly principal and interest (PI) mortgage payment. This does not include property tax, homeowner insurance, or PMI payments.

Payoff amt:Payoff amount:Current mortgage payoff amount:Current mortgage payoff amount:

Current mortgage payoff amount:

Based on your entries, this is how much you still owe (principal balance) on your home loan after deducting all of the principal payments you have already made.

Points:Loan origination:Loan origination fee:Loan origination fee:

Loan origination fee:

Based on your entries, this is total product of your refinanced loan balance times the loan origination percentage points.

Total other:Total other fees:Total of other loan fees:Total of other loan fees:

Total of other loan fees:

Based on your entries, this is total of all flat loan fees (not based on a percentage).

Total costs:Total closing costs:Total closing costs:Total closing costs on new mortgage:

Total closing costs on new mortgage:

Based on your entries, this is total of your points paid plus all other closing costs.

New amt:New amount:New mortgage amount:New mortgage amount:

New mortgage amount:

Based on your entries, this is the loan amount the calculator will use for the new mortgage amount. If you chose to include the closing costs in the loan amount, this result will be the combined total of your existing mortgage balance, plus the calculated closing costs. The amount also reflects any cash-out or cash-in amounts you entered.

Offset mos:Offset months:Months till savings offsets costs:Months till refinance savings offsets closing costs:

Months till refinance savings offsets closing costs:

Based on your entries, this is how many months you will need to stay in your refinanced mortgage before the refinance savings will offset the cost of obtaining the new mortgage (closing costs).

Comparison Results
Com-
pare
CompareComparisonComparison
Current
Mortgage
Current
Mortgage
Existing
Mortgage
Existing
Mortgage
Refi
Mortgage
Refi
Mortgage
Refinanced
Mortgage
Refinanced
Mortgage
Refi
+/-
Refi
+/-
Refinance
+/-
Refinance
+/-
Pmt:Pmt:Payment:Monthly Payment:

Monthly payment row:

This row shows your current principal and interest payment, the refinanced principal and interest payment, and a column containing the difference between the two monthly payments. A plus sign (+) indicates a payment increase, whereas a minus sign (-) indicates a payment decrease.

Cost:Cost:Net cost:Net cost:

Net cost row:

This row shows the total of the remaining interest costs on your existing mortgage, the interest costs plus closing costs of the refinanced mortgage, and a column containing the difference between the two net-costs. A plus sign (+) indicates a cost increase, whereas a minus sign (-) indicates a cost decrease. Note that Net Costs does not account for changes in PMI.

LTV:LTV:Loan to Value:Loan to Value:

Loan to Value (LTV):

If you entered a market value, this row will show your current LTV ratio, the refinanced LTV ratio, and a column containing the difference between the two LTV ratios. A plus sign (+) indicates a LTV increase, whereas a minus sign (-) indicates a LTV decrease. LTV ratios greater than 80% will likely require that you purchase Private Mortgage Insurance (PMI).

PMI:PMI:PMI pmt:PMI payment:

Private Mortgage Insurance (PMI):

If you entered a market value, this row will show your estimated current monthly PMI (Private Mortgage Insurance) payment, the refinanced PMI payment, and a column containing the difference between the two PMI payment amounts. A plus sign (+) indicates a PMI increase, whereas a minus sign (-) indicates a PMI decrease.

PIP:PIP:PIP pmt:PIP payment:

Monthly Principal, Interest, PMI payment (PIP):

If you entered a market value, this row will show your estimated current monthly Principal, Interest, and PMI payment (PIP), the refinanced PIP payment, and a column containing the difference between the two PIP payment amounts. A plus sign (+) indicates a PIP increase, whereas a minus sign (-) indicates a PIP decrease.

If you would like to save the current entries to the secure database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

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About

About the Home Loan Refinance Calculator

This free online Home Loan Refinance Calculator will calculate the net effect of refinancing your home loan at a lower interest rate, a different term, or both.

The calculator includes a cash out option and a built-in feature to help you estimate the refinance mortgage closing costs (no closing costs, low, medium, and high settings).

Plus, unlike most other online mortgage refinancing calculators, the home loan refinance calculator on this page will calculate how long you will need to stay in your refinanced mortgage in order for the lower interest rate savings to offset the cost of the new home loan (break-even point).

Finally, the calculator will even calculate the effect refinancing will have on your Loan-To-Value (LTV) ratio, and then estimate the expected change to your PMI (Private Mortgage Insurance) payment.

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Instructions

How to use the Home Loan Refinance Calculator

Step #1:

If you'd like the calculator to calculate LTV and PMI, enter the current market value of your home, and your current monthly PMI payment amount.

Step #2:

If you've been making the prescribed monthly payments, choose "Original Terms" and enter the original home loan amount, the annual percentage rate (APR), the original home loan term in years, and the number of payments made.

Or, if you've made extra, unscheduled, or intermittent payments, choose "Current Payoff Amount" and enter the current payoff, the current APR, and your current monthly principal and interest payment amount.

Step #3:

Enter the new refinance rate, new loan term, and any cash-out or cash-in amounts that may apply.

Step #4:

Either select None, Low, Medium, or High to have the calculator estimate your closing costs, or select None to enter your own closing cost estimates.

Step #5:

Choose whether or not you want to include the closing costs in the amount to refinance

Step #6:

Tap the "Calculate Refinancing" button and scroll down to view the results.

Saving Entries:

If your web browser supports Local Storage, you can save your entries to your web browser so won't have to start over on your next visit. Please note that your saved entries can only be retrieved from the same device and web browser you were using when you stored them. If you would like to access your saved entries from any device I invite you to subscribe to the Ad-Free Member Version.

To save your entries to your web browser, click or tap the Data tab in the Help and Tools section (mobile: top right of the main screen), select "New Data Record" from the drop-down menu, enter a name for the data record, and then tap or click the Save button.

To load previously saved entries, click or tap the Data tab and select the saved data record from the drop-down menu. You can then save any changes to your entries by simply clicking the Save button while the data record is selected.

To clear a named set of saved entries, click or tap the Data tab, select the saved data record from the drop-down menu, and then tap or click the Clear button.

Numbers and Decimals:

Only numeric characters (0-9 and decimal points) may be entered in numeric fields. Non-numeric characters (dollar signs, percent signs, commas, etc.) may cause calculation errors. If the field includes a grid icon, tapping the icon will open a popup keypad which will include only the characters allowed in the field. If your device keypad does not include a decimal point, use this popup keypad to enter decimal numbers where applicable.

Popup Tool Tips:

Tap the info (i) icons for a further explanation of each entry field (you can click [X] or outside of the pop-up tool tips to close them). A summary of these explanations, along with any additional term explanations, can also be found under the Terms tab.

Disclaimer:

Since I can't test for every possible combination of numbers, please be sure to double-check the results of this calculator yourself before considering them to be valid. If you do discover an issue with the calculated results, please report the issue using the feedback form located below the calculator.

Scrolling & Shrinking:

In order to scroll the calculator vertically you will need to swipe just outside of the calculator's dark-blue border, or use the window's far right-hand scroll bar, whichever is applicable to your device.

If the top section of the calculator becomes to tall for your viewport, tapping in the "Enter a problem..." field should reset the top section to its original height.

Disclaimer:

The Algebra Calculator is the only calculator on the site that I did not create myself. And since I did not create it, I don't have access to the code for fixing any issues you may be experiencing. So if you are having issues with the calculator, please visit the support page at Mathway.com for assistance.

Glossary

Fields, Terms, and Definitions.

Reset button:

Clicking the "Reset" button will restore the calculator to its default settings.

Pocket Calculator

Calculate any amounts needed to enter into calculator.

 

Data Management

Save and retrieve entries and notes (requires HTML5 compliant web browser).

Calculator Data

Calculator Data:

If you are using the latest version of your web browser software, this feature will allow you to save your calculator entries to your web browser's local storage in between visits. This means the calculator entries can only be recalled with the same device and web browser you were using when you saved them. If you'd like to save data between devices you will need to subscribe to the Ad-Free Member Version.

Save: To save a new set of calculator entries, select "New Data Record" from the dropdown list, enter a nickname for the data record, then click the "Save" button.

Load: To load a previously saved set of calculator entries, simply select the name of the data record from the dropdown list.

Save Changes: To save changes to a set of previously saved calculator entries, be sure the name of the data record is selected, and then click the "Save" button.

Clear: To clear a saved set of entries, be sure the name of the data record is selected, and then click the "Clear" button.

Backup Data
My Notes:
Subscribe to the Cloud level of the Ad-Free Member Version to save your entries and notes to a secure online database, allowing you to access your saved entries from any device or web browser.

Sorry! The Save functions are bonus features reserved for those who allow ads to display on the page.

If you would like to use the Save features, please disable ad blocking for this website and refresh the page. Or you can choose to subscribe to the Ad-Free Member Version of the site.

Help and Tools

Help and Tools:

This section, which you can Unstick or Hide in the Calculator Preferences (just above the top of the calculator), contains the following tabs (content too long to fit within bordered frame can be scrolled up and down):

About: Click this tab for an introduction to the calculator.

Instructions: Click this tab for step-by-step instructions for using the calculator.

Terms: Click this tab for a list of the descriptions that are located within each popup help button (info icons).

PCalc: Click this tab for a handy "pocket" calculator you can use when you need to calculate an entry needed for the calculator.

Data: Click this tab to save a set of entries or a note in between visits. Entries and notes will be stored to your web browser's local storage (if supported by your browser of choice), meaning they can only be recalled with the same device and web browser you were using when you saved them. If you'd like to save entries and notes between devices you can do so by subscribing to the Ad-Free Member Version.

 

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