Mortgage Refinance Calculator
Refinancing means replacing your existing loan with a new one. People often refinance to get a lower interest rate, reduce their monthly payment, or shorten their loan term.
The Breakeven Point:This is the most important calculation. It tells you how many months it will take for your monthly savings to cover the upfront closing costs of the new loan. If you plan to stay in your home longer than the breakeven point, refinancing could be a good financial decision.
Monthly Payment (M): $$ M = P \frac{r(1+r)^n}{(1+r)^n - 1} $$ Breakeven Point (Months): $$ \text{Breakeven} = \frac{\text{Closing Costs}}{\text{Monthly Savings}} $$
This calculator provides an estimate and is not financial advice. It does not account for taxes, insurance, or private mortgage insurance (PMI). Always consult with a qualified financial advisor or mortgage lender.
Find your breakeven point and see if refinancing makes sense.