Refinancing means replacing your existing mortgage with a new loan, usually with better terms. This could mean a lower interest rate, different loan term, or accessing home equity through cash-out refinancing.
Interest Rates Have Dropped
Generally, a 1% reduction in interest rate can make refinancing worthwhile
Improved Credit Score
Better credit can qualify you for lower interest rates
Long-Term Plans
Plan to stay in your home long enough to recover refinancing costs
Enter Current Loan Details
Input your remaining loan balance, current interest rate, and remaining term
Input New Loan Information
Enter the new interest rate you qualify for and desired loan term
Add Refinancing Costs
Include estimated closing costs, typically 2-5% of the loan amount
Review Results
Analyze monthly savings, break-even point, and total savings over the loan term
The difference between your current and new monthly payments. A positive number means lower payments.
The number of months it will take to recover your refinancing costs through monthly savings.
The estimated amount you'll save over the entire term of your new loan, after accounting for refinancing costs.
Extending your loan term might increase total interest paid despite lower monthly payments
Consider how long you plan to stay in your home compared to the break-even point
Remember to factor in all refinancing costs, including application fees, appraisal, and closing costs