When mortgage interest rates fall, refinancing becomes an attractive option for many homeowners, but there other things to consider.
During the past few years, record numbers of Americans have refinanced their home
mortgages as a result of historically low interest rates. This calculator is designed
to help you determine whether you should consider refinancing your mortgage.
Loan origination fees are typically charged by the lender to process your loan (1 point = 1 percent).
Fixed costs could include fees for items such as the appraisal, notary, inspections, and recording fee.
Your Results
The results below show the estimated cost of refinancing, your current and refinanced
mortgage payment amount, the monthly savings, and the amount of time it will take
you to recoup the costs of refinancing. If you plan to sell your home before you
recoup the cost of refinancing, it may not be worthwhile. However, if you plan to
stay in your home beyond that time, refinancing could possibly save you a substantial
amount of money.
Total estimated refinance costs:

$0.00

Current monthly payment:

$0.00

Estimated monthly payment (refinanced):

$0.00

Monthly savings:

$0.00

Break even (in months) to recover refinancing costs:

0

The calculation above assumes the refinance costs are not added to the new loan.
This hypothetical example assumes your mortgage is subject to refinancing.
The graph below illustrates the difference between your current mortgage and the
mortgage you are considering. You can see what the balance and payoff time would
be for each mortgage. Although your monthly payments and overall expenses may be
reduced if you refinance, the term of your payments may be longer. For example,
if you have been paying on your current 30year mortgage for five years and you
refinance a new 30year mortgage, you will be making payments for an additional
five years.
Projected Refinance Costs
The calculation above assumes the refinance costs are not added to the new loan.
This hypothetical example assumes your mortgage is subject to refinancing.