Mortgage Refinance Calculator
See if refinancing your mortgage would save you money after accounting for closing costs.
Mortgage Refinance Calculator
Current Mortgage
New Mortgage
How Refinancing Works
Refinancing = replacing your current mortgage with a new one, ideally at a lower rate. You pay closing costs (2-5% of loan amount) upfront. Break-even point = closing costs ÷ monthly savings. If you will stay in the home longer than the break-even period, refinancing makes sense.
Common reasons: lower your rate (saves interest), shorten your term (pay off faster), switch from ARM to fixed rate (predictable payments), or cash-out refinance (borrow against equity).
Frequently Asked Questions
How much can I save?
Depends on your rate drop, loan amount, term, and closing costs. Generally need at least a 0.5-1% rate drop to make it worth the closing costs. Calculate your break-even point: closing costs ÷ monthly savings.
What credit score do I need?
Minimum 620 for conventional. 740+ for best rates. FHA and VA loans are more flexible.
How much equity do I need?
20% equity avoids PMI on conventional loans. FHA allows 3.5%, VA allows 0% for veterans. Cash-out refinance usually needs more equity.
How often can I refinance?
No legal limit, but lenders usually require 6-12 months between refinances. Each refinance costs 2-5% in closing costs, so frequent refinancing doesn't make sense.
Tax implications?
Mortgage interest is still tax-deductible on loans up to $750k if you itemize. Points paid for refinancing must be amortized over the loan life. Talk to a tax pro for your specific situation.
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