Mortgage Refinance Calculator (USA)
Rate-and-term refi savings — monthly drop, closing-cost break-even and when the refi rule-of-thumb actually applies.
Formula
Disclaimer: Compares equal remaining tenures; lender-specific charges and rate resets can change outcomes. Not financial advice.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need mortgage refinance calculator results fast? Skip the spreadsheet and get a clear, defensible answer in one step — free, private and instant, recalculating live as you change any input.
About Mortgage Refinance Calculator (USA)
A rate-and-term refinance is the cleanest deal in US housing finance when the spread is real: the defaults — $310,000 at 7.1% refinanced to 5.9% with 26 years remaining and $6,000 of closing costs — drop the payment ~$240/month and break even in roughly two years; everything after that is yours. The old '1% rule' is a decent first filter, but break-even months versus your expected years-in-home is the actual decision. Closing costs (2–5% of the loan: origination, appraisal, title, recording) can be paid cash, rolled into the balance (you'll pay interest on them — add a sliver to the true cost), or absorbed via 'no-cost' refis that take a higher rate instead — fine for short horizons, expensive for long ones. Watch the term-reset trap: refinancing 26 remaining years into a fresh 30 manufactures fake monthly savings; match the new term to your remaining payoff horizon, as this calculator assumes. Process leverage: mortgage pricing varies more between lenders than borrowers believe — three Loan Estimates on the same day routinely span 0.25–0.5% — and credits/points let you tune the rate-vs-cash trade. Your escrow refunds from the old loan and the skipped payment month soften the cash sting. If rates keep falling after you close, refinance again; serial refinancing is rate-shopping, not failure.
How to use Mortgage Refinance Calculator (USA)
- 1Enter Outstanding balance, Current rate (%), New rate on offer (%), Remaining tenure (years), Closing costs (2–5% typical; enter your Loan Estimate figure) into the Mortgage Refinance Calculator.
- 2The result is computed automatically using Saving = (EMI_old − EMI_new) × remaining months − switching costs ; Break-even = costs ÷ monthly saving — there is no button to press; it updates live as you type.
- 3Change any input to model a different scenario, then use “Copy result link” to share the exact numbers.
Why use Mortgage Refinance Calculator (USA)?
- ✓Computes mortgage refinance calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter are never uploaded or stored
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What's the break-even rule for refinancing?+
Closing costs ÷ monthly savings = months to break even — computed live above. If you'll own the home (and keep the loan) beyond that, refinance; if a move or payoff is likely sooner, skip or choose a no-cost structure. The 1%-spread folklore approximates this but fails at big balances (0.5% can pay) and small ones.
Should I roll closing costs into the loan?+
It preserves cash and usually still wins if you're staying long — but you pay interest on the costs for decades (≈ $6,000 financed at 5.9% over 26 years adds ~$3,600 of interest). Holding under ~5 years, prefer lender credits/no-cost pricing; holding long with idle cash, pay them upfront.
Does refinancing reset my mortgage clock?+
Only if you let it: lenders default to fresh 30-year terms because lower payments sell. Insist on a term matching your remaining years (26 here) or shorter — many lenders write odd terms (e.g., 25 or 22 years) on request, and 15/20-year refis carry their own rate discounts worth quoting.
How much does a refi cost my credit score?+
A few points, briefly: one hard-inquiry cluster (multiple mortgage pulls within ~45 days count once) and a new account. The score recovers within months of on-time payments. Don't let score-preciousness block a four-figure annual saving — but do avoid opening other credit during the refi underwriting window.
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