Use our Refinance Calculator to estimate potential savings from refinancing your loan. Compare interest rates, monthly payments, and total costs effectively.
Considering refinancing your mortgage, auto loan, or student debt? Our refinance calculator helps you determine if it’s the right financial move. With interest rates constantly changing and your financial situation evolving, refinancing could potentially save you thousands of dollars over the life of your loan. But how do you know if the timing is right? That’s where our comprehensive refinance calculator comes in – giving you the clarity you need to make this important financial decision with confidence.
Refinance Calculator
Enter your current loan details and potential new loan information to see if refinancing makes financial sense for you.
What is Loan Refinancing?
Refinancing involves replacing your existing loan with a new one, typically with more favorable terms. When you refinance, you’re essentially paying off your current loan with the proceeds from a new loan. The new loan often comes with a different interest rate, term length, or monthly payment amount.
While refinancing is most commonly associated with home mortgages, you can also refinance auto loans, student loans, and personal loans. The primary goal is usually to secure better terms that align with your current financial situation and goals.
Common Reasons to Refinance
- Lower your interest rate and monthly payments
- Shorten your loan term to pay off debt faster
- Convert from an adjustable-rate to a fixed-rate loan
- Access home equity through cash-out refinancing
- Consolidate multiple loans into a single payment
- Remove a co-borrower from the loan
- Eliminate private mortgage insurance (PMI)
Ready to see if refinancing makes sense for your situation?
How Our Refinance Calculator Works
Our refinance calculator is designed to help you make an informed decision by comparing your current loan with potential refinancing options. By inputting a few key details about your existing loan and the new loan you’re considering, you can quickly see if refinancing makes financial sense.
Input Fields
- Current loan balance
- Current interest rate
- Remaining loan term
- New interest rate
- New loan term
- Closing costs
Calculator Results
- New monthly payment
- Monthly payment savings
- Lifetime interest savings
- Break-even point
- Total cost comparison
Key Metrics
- Break-even timeline
- Total interest paid
- Loan payoff date comparison
- Equity building rate
- Long-term savings analysis
Understanding Your Results
Monthly Savings
This shows how much less (or more) you’ll pay each month with your new loan compared to your current loan. A positive number indicates monthly savings, while a negative number means your monthly payment would increase.
Lifetime Interest Savings
This calculation shows the total interest you’ll save over the entire life of the loan by refinancing. Even small reductions in interest rates can lead to significant savings over time, especially for longer-term loans.
Break-Even Point
Refinancing typically involves closing costs. The break-even point is how long it will take for your monthly savings to cover these upfront costs. If you plan to keep the loan beyond this point, refinancing may make financial sense.
Total Cost Comparison
This shows the total cost of both loans, including principal, interest, and fees. This comprehensive view helps you understand the true long-term financial impact of refinancing.
Step-by-Step Guide to Using Our Refinance Calculator
Follow these simple steps to get accurate results from our refinance calculator and make an informed decision about whether refinancing is right for you.
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Enter Your Current Loan Details
Input your current loan balance, interest rate, and the remaining term of your loan. If you’re not sure about your exact balance, check your most recent loan statement or contact your lender.
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Input New Loan Information
Enter the interest rate you expect to receive on your new loan. You can use our current rate estimates or input a specific rate you’ve been quoted. Also specify the term length for the new loan.
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Add Refinancing Costs
Include any closing costs, application fees, appraisal fees, and other expenses associated with refinancing. These typically range from 2-5% of the loan amount for mortgages and may be lower for other loan types.
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Review Your Results
Examine the calculated monthly savings, total interest savings, and break-even point. Consider how these figures align with your financial goals and how long you plan to keep the loan.
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Adjust Variables to Compare Scenarios
Try different combinations of interest rates, loan terms, and closing costs to see how they affect your potential savings. This helps you find the optimal refinancing strategy.
Ready to run the numbers and see if refinancing makes sense for you?
Mortgage Refinance Calculator
Mortgage refinancing is the most common type of refinancing, given the size and length of these loans. Even a small reduction in interest rate can lead to significant savings over the life of a mortgage.
Types of Mortgage Refinancing
Rate-and-Term Refinance
The most common type of refinance, where you change your interest rate, loan term, or both, without changing the loan amount. Ideal for lowering your interest rate or changing from a 30-year to a 15-year mortgage.
Most Common
Cash-Out Refinance
Borrow more than you currently owe and receive the difference in cash. This option lets you tap into your home equity for renovations, debt consolidation, or other major expenses.
Access Equity
Cash-In Refinance
Pay a lump sum toward your principal to reduce your loan-to-value ratio, potentially qualifying you for better rates or eliminating the need for mortgage insurance.
Build Equity
Mortgage Refinance Costs
When refinancing a mortgage, you’ll typically encounter several fees that can impact your break-even point and overall savings. Our calculator factors these costs into your results.
| Fee Type | Typical Cost | Description |
| Application Fee | $300-$500 | Covers the cost of processing your application and checking your credit |
| Appraisal Fee | $300-$700 | Pays for a professional assessment of your home’s current market value |
| Origination Fee | 0.5-1% of loan amount | Charged by the lender for creating the new loan |
| Title Search & Insurance | $700-$900 | Ensures there are no liens against your property and protects the lender |
| Recording Fee | $25-$250 | Paid to your local government to record the new mortgage |
Auto Loan Refinance Calculator
Auto loan refinancing can help reduce your monthly car payment or the total interest paid over the life of the loan. Our calculator helps you determine if refinancing your auto loan makes financial sense.
When to Refinance Your Auto Loan
- Your credit score has improved since taking out the original loan
- Interest rates have dropped significantly
- You’re struggling with high monthly payments
- You want to remove or add a co-borrower
- You’re unhappy with your current lender’s service
Auto Refinance Considerations
Potential Benefits
- Lower monthly payments
- Reduced interest rate
- Better loan terms
- Improved cash flow
Watch Out For
- Prepayment penalties
- Extended loan terms (more interest)
- Upside-down loans
- Application fees
Important: Be cautious about refinancing to a longer term. While this can lower your monthly payment, it often means paying more in total interest over the life of the loan and could result in owing more than your car is worth (being “upside-down” on your loan).
Ready to see how much you could save by refinancing your auto loan?
Student Loan Refinance Calculator
Student loan refinancing can be a smart strategy for reducing interest rates and monthly payments on your education debt. Our calculator helps you evaluate the potential benefits and determine if student loan refinancing is right for your situation.
Federal vs. Private Student Loan Refinancing
| Consideration | Federal Student Loans | Private Student Loans |
| Refinancing Impact | Refinancing federal loans converts them to private loans, losing federal benefits | Can be refinanced with potentially better terms without losing benefits |
| Income-Driven Repayment | Available (lost if refinanced) | Not typically available |
| Loan Forgiveness | Potential forgiveness programs (lost if refinanced) | Not available |
| Deferment/Forbearance | Generous options (lost if refinanced) | Limited options, varies by lender |
Warning: Refinancing federal student loans means losing access to federal benefits like income-driven repayment plans, loan forgiveness programs, and generous deferment options. Carefully consider these trade-offs before refinancing federal student loans.
When Student Loan Refinancing Makes Sense
- You have private student loans with high interest rates
- Your credit score has improved significantly since taking out the loans
- You have a stable income and strong employment prospects
- You don’t anticipate needing federal loan benefits like income-driven repayment
- You’re not pursuing Public Service Loan Forgiveness or other forgiveness programs
See if refinancing your student loans could save you money:
Personal Loan Refinance Calculator
Refinancing a personal loan can help you secure a lower interest rate, reduce monthly payments, or change your loan term. Our calculator helps you determine if personal loan refinancing makes financial sense for your situation.
Benefits of Personal Loan Refinancing
Financial Advantages
- Potentially lower interest rate
- Reduced monthly payments
- Simplified finances by consolidating multiple loans
- Opportunity to improve credit score with on-time payments
Flexibility Benefits
- Adjust loan term to match your financial goals
- Remove or add a co-signer
- Switch from variable to fixed interest rate
- Choose a lender with better customer service
Tip: When refinancing a personal loan, pay close attention to any origination fees or prepayment penalties. These costs can significantly impact whether refinancing makes financial sense in the long run.
Factors That Affect Personal Loan Refinancing
Credit Score
Your credit score is one of the most important factors in determining your eligibility and interest rate for a refinance loan. A higher score typically means better rates and terms.
Debt-to-Income Ratio
Lenders look at your debt-to-income ratio to assess your ability to repay the loan. A lower ratio improves your chances of qualifying for favorable refinancing terms.
Loan Term
Choosing a shorter term typically means higher monthly payments but less interest paid overall. A longer term reduces monthly payments but increases total interest costs.
Ready to see if refinancing your personal loan could save you money?
Advanced Refinancing Concepts
Beyond the basic calculations, several advanced factors can influence whether refinancing makes financial sense. Understanding these concepts can help you make a more informed decision.
Loan-to-Value Ratio (LTV)
LTV is the ratio of your loan amount to the value of the asset (home, car, etc.). A lower LTV ratio typically qualifies you for better interest rates and terms. For mortgages, an LTV below 80% often eliminates the need for private mortgage insurance.
LTV Ratio = (Loan Amount ÷ Asset Value) × 100%
Example: If you owe $150,000 on a home worth $250,000, your LTV is 60%.
Break-Even Analysis
The break-even point is when your savings from refinancing equal the costs of refinancing. This is a critical calculation that helps determine if refinancing makes financial sense based on how long you plan to keep the loan.
Break-Even Point (months) = Total Refinancing Costs ÷ Monthly Savings
Example: If refinancing costs $3,000 and saves you $150 per month, your break-even point is 20 months.
Points and Fees
Mortgage points (or discount points) are fees paid directly to the lender at closing in exchange for a reduced interest rate. One point costs 1% of your mortgage amount and typically lowers your rate by 0.25%.
When using our calculator, you can include points in your closing costs to see if paying for a lower rate makes sense over the life of your loan.
Credit Score Impact
Your credit score plays a crucial role in determining your refinance interest rate. Even a small improvement in your score can lead to significant savings over the life of your loan.
| Credit Score Range | Typical Mortgage Rate Impact | Potential Monthly Savings on $250,000 Loan |
| 760-850 (Excellent) | Lowest available rates | Baseline (maximum savings) |
| 700-759 (Very Good) | +0.25% above lowest rates | ~$35 less savings per month |
| 660-699 (Good) | +0.5% above lowest rates | ~$70 less savings per month |
| 620-659 (Fair) | +1.0% above lowest rates | ~$140 less savings per month |
Pro Tip: If your credit score has improved significantly since you took out your original loan, you may qualify for much better rates. Consider checking your credit score and working to improve it before applying for refinancing.
Pros and Cons of Refinancing
While refinancing can offer significant benefits, it’s not the right choice for everyone. Consider these advantages and disadvantages before making your decision.
Potential Benefits
- Lower interest rate, reducing total interest paid
- Reduced monthly payments, improving cash flow
- Shorter loan term, building equity faster
- Switching from variable to fixed rate for payment stability
- Consolidating multiple loans into one payment
- Accessing equity for major expenses (cash-out refinance)
- Removing private mortgage insurance (PMI)
Potential Drawbacks
- Closing costs and fees that may take years to recoup
- Extending loan term can increase total interest paid
- Potential prepayment penalties on existing loan
- Loss of federal benefits when refinancing student loans
- Temporary negative impact on credit score
- Risk of refinancing too frequently (serial refinancing)
- Process can be time-consuming and paperwork-intensive
Not sure if refinancing is right for you? Our calculator can help you make an informed decision.
Frequently Asked Questions About Refinancing
How accurate are refinance calculators?
Refinance calculators provide estimates based on the information you input. While they’re generally accurate for comparing scenarios, actual results may vary based on factors like your specific lender, credit profile, and market conditions. For the most accurate assessment, consult with a loan officer after using our calculator to get a preliminary idea.
When does refinancing not make sense?
Refinancing typically doesn’t make sense if: 1) You plan to move or sell the asset soon, before reaching the break-even point, 2) The closing costs outweigh the potential savings, 3) Your credit score has decreased significantly, resulting in higher rates, 4) You’ve already paid off most of your loan, as most interest is paid in the early years, or 5) For student loans, if you rely on federal loan benefits that would be lost through refinancing.
Are closing costs included in refinance calculators?
Yes, our refinance calculator includes closing costs as part of the calculation. You can input your estimated closing costs, which typically range from 2-5% of the loan amount for mortgages and may be lower for other loan types. These costs are factored into the break-even analysis to give you a more accurate picture of when refinancing will start saving you money.
How often can I refinance my loans?
Technically, there’s no legal limit to how often you can refinance most loans. However, each refinance typically comes with closing costs that take time to recoup. Some lenders may also have “seasoning requirements” that require you to wait a certain period (often 6-12 months) between refinances. Frequent refinancing can also temporarily impact your credit score due to multiple hard inquiries.
What credit score do I need to refinance?
Credit score requirements vary by loan type and lender. Generally, you’ll need a minimum score of 620 for conventional mortgage refinancing, though FHA loans may accept scores as low as 580. For the best rates, aim for a score of 740 or higher. Auto loans and personal loans may have different requirements, with some lenders accepting scores as low as 600, though better scores will qualify you for more favorable terms.
Can I refinance if I’m underwater on my loan?
Being “underwater” means you owe more than your asset is worth. This makes refinancing challenging but not impossible. For mortgages, government programs like HARP (Home Affordable Refinance Program) were designed specifically for underwater homeowners, though availability changes over time. For auto loans, you may need to pay down the principal until you’re no longer underwater, or look for lenders who specialize in high loan-to-value refinancing.
Make Informed Refinancing Decisions with Our Calculator
Refinancing can be a powerful financial tool when used wisely. Our comprehensive refinance calculator helps you cut through the complexity and determine if refinancing makes sense for your unique situation. By comparing your current loan with potential new options, you can clearly see the potential savings, costs, and break-even point before making this important financial decision.
Remember that market conditions, interest rates, and your personal financial situation can change over time. It’s worth revisiting the refinance calculator periodically to see if new opportunities for savings have emerged. Whether you’re looking to lower your monthly payments, reduce your total interest costs, or access equity in your home, our calculator gives you the insights you need to move forward with confidence.
Ready to Explore Your Refinancing Options?
Use our free refinance calculator to see if you could save money by refinancing your loan.