Mortgage Refinance Calculator

Find Out If You Should Refinance

Our free refinance calculator can help you estimate a new monthly payment and the potential savings across different loan types and interest rates.

Get Started

Select Your Current Mortgage BalanceOK to estimate

Your results will show here once you complete the questions above.

Understanding Refi Calculators

Here’s what the results from our mortgage refinancing calculator mean for you.

Loan type

These are some options for refinancing: 30-year and 15-year fixed-rate mortgages, a 5/1 adjustable-rate mortgage, or a cash-out refinance.

New monthly payment

This would be your estimated monthly mortgage payment after refinancing.

Monthly savings

We show you how much you could potentially save each month by refinancing. The calculator subtracts your new monthly payment from your current monthly payment.

Interest savings

This tells you how much total interest you could potentially save by refinancing.

Cash out

If you choose a cash-out refinance, we show you the amount of equity you have. Equity is the difference between your home’s value and the balance on your mortgage. Cash-out refinancing allows you to borrow money against your equity.

APR and interest rate

Our calculator provides the annual percentage rate and interest rate that you could potentially get with each refinance option.

Loan term

The loan term is the number of years that you have to pay off the mortgage — typically 30 years or 15 years.

Lower payment

A check mark indicates this refinance option will likely have a lower monthly payment compared with your current loan. An X means it probably won’t help you achieve this goal.

Lower rate

This field shows whether the refinance option will likely come with a lower interest rate and less total interest charged. A check mark means the answer is yes, and an X means no.

Pay off faster

A check mark in this field means the refinance option will likely help you repay your mortgage faster and lower the overall cost of your loan. An X indicates this option probably won’t meet these goals.

Pay less interest

You could end up paying more or less interest after refinancing. A check mark tells you that you’ll likely get charged less total interest with this refinance option; an X means you’ll probably pay more instead.

When To Refinance Your Mortgage

If any of the following scenarios apply, then refinancing could be worth it:

Interest rates have dropped. If you can refinance to a lower rate, then you could reduce the total amount of interest charged on your loan. In general, it’s worth considering a refinance if you can cut your interest rate by at least 1 percentage point.
You want to reduce your monthly payment. Aside from getting a lower interest rate, another way to reduce your mortgage payment (and add breathing room to your budget) is to extend the loan term. Just remember this means you’ll end up paying more in overall interest.
You want to repay your loan more quickly. If you’re currently making more money and can afford higher monthly payments, then you could consider refinancing to shorten your loan term and pay less total interest.
You want stable monthly payments. Refinancing from an adjustable-rate mortgage (where your principal and interest payments can change depending on market conditions) to a fixed-rate mortgage means greater predictability in your housing expenses.
Your credit score has improved. If your credit score has increased compared with when you first took out your mortgage, then refinancing could help you score better terms and rates, if otherwise qualified.
You want to use your equity to take out cash. Cash-out refinancing allows you to borrow against your equity and receive a lump sum that you can use to make home improvements, consolidate debts, and achieve other financial goals.

What’s Next?

If doing the math has made you more interested in learning about how to refinance your mortgage, you can take the next step of getting matched with a lender.

Mortgage Refinancing FAQ

Still unclear about how refinancing works? Here are the answers to frequently asked questions.

Does refinancing hurt your credit?

After you apply for a mortgage refinance, the lender checks your credit. This process is called a hard inquiry and can hurt your credit score. However, the damage will be temporary. As you continue making mortgage payments on time, your credit score will rebound.

Do you get money back from escrow after refinancing?

Your escrow account holds funds to pay taxes and insurance. Unless those expenses have changed, you shouldn’t expect to get an escrow refund.

However, if you’re refinancing with a new lender, then your original escrow account will get closed and a new one will be opened for you. If you’re refinancing with the same mortgage lender, then your escrow account won’t change.

How much does it cost to refinance your house?

Refinancing comes with closing costs, like when you originally took out your mortgage. A refinance costs about $5,000, on average, but it varies depending on the size of your mortgage and where you live. There are also ways to reduce your refinance closing costs.

What is the break-even point for refinancing?

The break-even point on a refinance is the number of months it will take for your monthly savings to recoup your closing costs.

Do you have to get an appraisal for a refinance?

An appraisal might not be required for you to refinance, depending on whether you qualify for an appraisal waiver or have a government-backed loan.

Should I make a last mortgage payment before refinancing?

Always make your scheduled mortgage payments on time and in full to avoid late fees and additional interest charges. You may hear about “skipping” a payment when refinancing; however, the concept can be misleading, so make sure you’re aware of how your payment due dates work.

What happens to your equity when you refinance your home?

If you refinance to a mortgage with a shorter loan term, then you’ll build equity faster and fully own your home sooner.

If you choose a cash-out refinance, then you’ll receive some of your equity at closing. Because you’re increasing the amount that you owe, a cash-out refinance also reduces the equity you have in your home.

Does refinancing save money in the long run?

Refinancing can help you save money in the long run, but it’s not guaranteed. Whether you’ll save money depends on the terms of your refinance as well as your plans.

You can save money on interest by refinancing to a lower rate without extending the repayment period, or refinancing to a shorter loan term. However, it’s also important to consider other factors, such as whether you might move before reaching your break-even point.

Also, if your credit score has declined, or if your home’s value has dropped, it could be difficult to qualify for terms that are more favorable compared with your existing mortgage.