Determine how much interest you could save by refinancing your mortgage
Do you know how much interest you could save if you refinance your mortgage? This calculator helps you find out!
Enter the specifics about your current mortgage, along with the new loan amortization, interest rate and any closing costs or penalties. The calculator will then determine how much interest you could save refinancing your mortgage.
How to Use the Mortgage Refinance Calculator
- Enter your information in the fields below. (See the definitions below the calculator for more information on each field).
- Once you have entered all information and selected your options, press the View Report button to see how much yu could save in interest and monthly payments.
Definitions
- Original mortgage balance
- Original amount of your existing mortgage.
- Original rate
- Annual interest rate for your existing mortgage.
- Original amortization
- The total number of years over which your existing mortgage would be paid.
- Number of payments made
- The total number of months that you have made payments on your existing mortgage.
- New rate
- Annual percentage rate of your new mortgage.
- New amortization
- The total number of years over which you will repay your new mortgage.
- New mortgage balance
- The principal of your new refinanced mortgage. This amount is equal to the current balance on your original mortgage. The assumption is that you pay all closing costs and prepayment penalties at the time of closing. The calculator does not add these costs to your new mortgage balance.
- Closing costs
- Total fees and other costs associated with the new mortgage and paid at the time of closing. This calculator assumes that you pay all closing costs with other funds and they are not included in the total of your new mortgage.
- Prepayment penalties
- Some mortgages require you to pay a penalty if the mortgage is paid off prior to the end of term. If you current mortgage has a penalty for prepayment, enter that amount here. Your prepayment penalties are an additional cost that is due at the time of closing.
- Breakeven point
- The breakeven point is the time it takes for your interest savings to equal the additional closing costs and prepayment penalties of refinancing. If you have no closing costs or prepayment penalties, there is no breakeven point.
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Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
