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Should I Refinance?

A lower rate is only half the question.

The other half is what it costs to get there, and how long you keep the house afterward. This tool answers both.

Put your loan next to the new one.

Enter what you owe today and what a new loan would look like. The comparison updates as you type, and nothing is sent anywhere.

You break even in

3 yrs 5 mo

By refinancing, you would:

  • Pay $199 less each month
  • Spend $47,618 less in interest over the life of the loan
New monthly payment
$2,130.15
Paid at closing
$8,000

On these numbers it looks worth pricing properly with a loan officer.

An estimate built from what you entered — not a quote or an approval.

Get this priced for you

Your current loan

Take these off your most recent mortgage statement, not from memory.

What you know about it

What you owe and what you pay. The term left is worked out from them.

The new loan

A starting assumption, not an offer. Your rate is priced to your file.

The same answer, two ways.

Every figure behind the verdict, side by side — and the month your savings finally cover what you paid at closing.

Your current loan compared with the new one
MeasureYour current loanThe new loan
Loan amount$300,343$300,343
Interest rate7.000%5.875%
Term20 yrs20 yrs
Monthly principal & interest$2,329.00$2,130.15
Interest still to pay$258,510$210,893
Paid at closing$0$8,000

Interest still to pay compares what is left of the loan you have with the whole of the one you would take — which is why a longer new term can lower the payment and raise this figure at the same time.

Break-even is a number. The decision is a conversation.

A loan officer can price the refinance you actually qualify for, and tell you which of these costs you would really pay.

Disclaimer

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.