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Mortgage Refinance Calculator

The decision to refinance a mortgage loan is a major one that requires careful consideration. Ultimately, your decision will hinge on whether refinancing your home loan will save you money. The best tools to use to make that determination are refinance calculators, which quickly calculate your total refinancing costs based on a few variables. On this page, you will find a free, user-friendly refi calculator to help you make the most financially sound decision about refinancing your mortgage.

How to Use a “Should I Refinance?” Calculator

Before you use a home mortgage refinance calculator, you will need to gather a few pieces of information. For the most accurate calculation of your potential savings, you will need your current mortgage information, such as your current monthly payment, interest rate, and number of years left on your home loan. Additionally, the home refinance calculator will require information about your prospective mortgage, including your new interest rate, loan term, and the cost of various fees (e.g., application, title search, attorney’s fees, and so on).

When you input these variables into the mortgage refinance calculator, it will tell you the exact dollar amount of your new monthly payment, monthly savings, the total cost of the new loan, and the number of months it will take for you to recover the cost of refinancing.

Interpreting the Results

Once you have a concrete number to work with, you can make an informed decision whether refinancing makes financial sense for you. The most important numbers you will get are the total cost of the new loan and how long it will take you to recoup that cost. For this reason, a refinance calculator is also often referred to as a refinance break even calculator because it will tell you how soon you will recover the initial expenses of the new loan.

Needless to say, the total cost of your new loan should be lower than the total cost of retaining your current mortgage. You might wonder how substantial your potential refinancing savings should be in order to justify the effort of taking out a new loan. The answer largely depends on how tight your budget is and how long you intend to stay in your home. For some borrowers, if a “should I refinance calculator” indicates savings of $50-$100 per month or more, the effort of the process is well-worth the savings because of their budget. Likewise, refinancing makes the most sense for homeowners who intend to stay in their homes for ten years or more because otherwise you may not recoup the cost of the new mortgage.

National Rate Averages

Mortgage Rates

Product Rate
5/1 yr ARM 3.147%
1 yr ARM 3.299%
15 yr fixed 3.221%
30 yr fixed 3.815%

Home Equity Rates

* Updated Jun 7, 2012