Mortgage Refinance Calculator
Determine if refinancing your mortgage makes financial sense. Compare your current loan with new rates and calculate potential savings, break-even point, and monthly payment changes.
Refinance Analysis
Current Loan
Remaining principal balance
Years left on current loan
New Loan
Rate you qualify for with new loan
Additional cash from cash-out refinance
Refinance Costs
Typical range: $5,000-$15,000
Important for break-even analysis
Refinance Analysis Results
Monthly Payment Comparison
Break-even Analysis
Potential Savings
Loan Comparison
Additional Considerations
When Should You Refinance?
Good Reasons to Refinance
- • Lower interest rates: At least 0.5-0.75% reduction
- • Improved credit: Better rates since original loan
- • Remove PMI: Home value increased to 20% equity
- • Cash-out needs: Home improvements, debt consolidation
- • Term changes: Switch from 30-year to 15-year
- • ARM to fixed: Lock in stable payments
When to Avoid Refinancing
- • Moving soon: Won't reach break-even point
- • Credit declined: Higher rates than current loan
- • High closing costs: Break-even takes too long
- • Low loan balance: Savings don't justify costs
- • Recent refinance: Haven't recouped last costs
- • Unstable income: Risk of not qualifying
Types of Refinancing
- • Rate & Term: Lower rate or change term
- • Cash-out: Access home equity in cash
- • Cash-in: Pay down principal to remove PMI
- • Streamline: Minimal documentation for existing customers
- • FHA Streamline: Simplified FHA-to-FHA refinance
- • VA IRRRL: Interest Rate Reduction Refinance for veterans
The Refinancing Process
Before You Apply
- • Check your credit score and report
- • Gather financial documentation
- • Research current market rates
- • Calculate potential savings
- • Shop with multiple lenders
- • Consider timing with rate trends
Application Process
- • Submit loan application
- • Lock in your interest rate
- • Provide required documentation
- • Order home appraisal
- • Review loan terms carefully
- • Schedule closing appointment
Required Documentation
- • Pay stubs (2 most recent)
- • W-2 forms (2 years)
- • Tax returns (2 years)
- • Employment verification letter
- • Bank statements (2 months)
- • Investment account statements
- • Retirement account statements
- • Gift letter if applicable
- • Current mortgage statement
- • Property tax records
- • Homeowner's insurance info
- • Credit card statements
Important Considerations
This calculator provides estimates only. Actual loan terms, rates, and costs will vary based on your credit profile, loan-to-value ratio, and current market conditions.
Shop Multiple Lenders: Rates and fees can vary significantly between lenders. Compare offers from at least 3-4 different lenders to ensure you get the best deal.
Consider Total Cost: Don't focus solely on monthly payment reduction. Factor in closing costs, how long you plan to stay, and total interest over the loan term.
Rate Lock Period: Interest rates can change between application and closing. Ensure your rate lock period is long enough to complete the process.
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