What is mortgage refinancing?

Mortgage refinancing is replacing your existing home loan with a new one, typically to get a lower interest rate, change loan terms, switch loan types, or access home equity through cash-out refinancing.

What are the types of refinancing?

Common types include: Rate-and-term refinance (lower rate or different term), Cash-out refinance (borrow against equity), Cash-in refinance (pay down principal), and Streamline refinance (simplified process for existing government loans).

How much can I save by refinancing?

Savings depend on the rate reduction, loan amount, and term. A 1% rate drop on a $300,000 loan can save over $50,000 in interest over 30 years, though closing costs (2-5% of loan) must be factored in.

When should I refinance my mortgage?

Consider refinancing when rates drop 0.5-1% below your current rate, your credit score has improved significantly, you want to switch from ARM to fixed-rate, or you need to access home equity for major expenses.

Refinance Calculator

Compare your current mortgage with refinancing options to see potential savings and make informed decisions.

Mortgage Refinance Calculator

Enter your current loan details and new loan terms to see your savings

Current Loan Details

Original Loan Amount ($) Your original mortgage amount

Current Balance ($) Remaining principal balance

Current Interest Rate (%) Your current mortgage rate

Original Loan Term (Years) Original loan duration

Years Paid So Far How long you've been paying

Current Monthly Payment ($) Leave 0 to auto-calculate

New Loan Details

New Interest Rate (%) Rate offered for refinancing

New Loan Term (Years) New loan duration

Cash-Out Amount ($) Extra cash from home equity (optional)

Closing Costs ($) Estimated refinance fees (2-5%)

Roll Closing Costs Into Loan? Include costs in loan amount?

Home Value ($) Current market value

Refinance Analysis

New Payment

per month

Payment Change

monthly difference

Interest Saved

over loan life

New LTV Ratio

loan-to-value

Refinance Summary

Monthly Savings

Lifetime Savings

Break-Even Point

0 mo

Current Loan Existing

Remaining Balance $0

Interest Rate 0%

Monthly Payment $0

Remaining Term 0 years

Total Remaining Interest $0

Total Remaining Cost $0

New Loan Refinanced

New Loan Amount $0

Interest Rate 0%

Monthly Payment $0

New Loan Term 0 years

Total Interest $0

Total Cost (incl. fees) $0

Payment Comparison

Current

Refinanced

Total Cost Comparison

Current Loan

New Loan

Principal

Interest

Closing Costs

Cost Analysis

Current Remaining Interest $0

New Total Interest $0

Closing Costs $0

                    Interest Difference
                    $0
                

                    Net Savings
                    $0
                

Refinance Term Scenarios

Term	Monthly Payment	Total Interest	Total Cost	vs Current

Amortization Comparison (First 12 Months)

Month	Payment	Principal	Interest	Balance

Refinance Savings Formula

Net Savings = (Current Interest - New Interest) - Closing Costs

Understanding Mortgage Refinancing

What is Refinancing?

Refinancing replaces your existing mortgage with a new loan, typically to secure a lower interest rate, change your loan term, switch from adjustable to fixed rate, or access home equity through cash-out refinancing.

Types of Refinancing

Rate-and-Term: Lower rate or different term
Cash-Out: Borrow against home equity
Cash-In: Pay down principal at closing
Streamline: Simplified process for FHA/VA loans
No-Closing-Cost: Higher rate, no upfront fees

When to Refinance

Rates are 0.5-1% lower than your current rate
Your credit score has improved significantly
You want to remove PMI (80% LTV)
You need to access home equity
You want to shorten your loan term

Costs to Consider

Closing costs: 2-5% of loan amount
Appraisal fee: $300-$600
Title insurance: $1,000-$2,000
Origination fee: 0.5-1% of loan
Prepayment penalty: Check current loan