Calculator guide
Compare your current payment with a proposed refinance. Use the explicitly labelled inputs below; rates, dimensions, and costs are assumptions, not live quotes.
Formula or method
Apply the fixed monthly payment formula to the existing balance at the current rate, and to balance plus financed closing costs at the new rate. Both comparisons use the entered new loan term, so the displayed current payment is a modeled comparison, not your actual lender payment when its remaining term differs. The tool does not calculate a cash-fee break-even date.
How to use this calculator
- Set Current Loan Balance. The interface starts with 300000; replace it with the value for your scenario.
- Set Current Interest Rate (%). The interface starts with 7; replace it with the value for your scenario.
- Set New Interest Rate (%). The interface starts with 6; replace it with the value for your scenario.
- Set New Loan Term (years). The interface starts with 30; replace it with the value for your scenario.
- Set Refinance Closing Costs. The interface starts with 6000; replace it with the value for your scenario.
- Compare the result with the worked example, then vary one assumption at a time so you can see what changes.
Worked example
Enter Current Loan Balance = 300000; Current Interest Rate = 7 %; New Interest Rate = 6 %; New Loan Term = 30 years; Refinance Closing Costs = 6000. With those assumptions, the calculator gives Current Monthly Payment: $1,995.91; New Monthly Payment: $1,834.62; Monthly Savings: $161.28. These outputs are calculated from the same implementation as the interactive tool.
Understanding the result
In this example, Current Monthly Payment is $1,995.91. New Monthly Payment is $1,834.62. Estimates exclude charges and rules not represented by the inputs. Rates and prices are assumptions; results are not a quote or guaranteed return.
Limitations and assumptions
- Estimates exclude charges and rules not represented by the inputs. Rates and prices are assumptions; results are not a quote or guaranteed return.
- The worked example demonstrates the stated assumptions, not a recommendation about your personal circumstances.
Frequently asked questions
Which inputs should I check first?
For Mortgage Refinance, check Current Loan Balance, Current Interest Rate, New Interest Rate, New Loan Term, Refinance Closing Costs. Keep the displayed units and select options consistent; do not treat default values as recommendations.
Why might my result differ from another tool?
Compare the other tool's mortgage refinance method, input units, rounding and assumptions. A matching title does not guarantee that both tools answer the same question.
Does a linked reference certify this result?
No. A reference can explain a formula or provide background for Mortgage Refinance, but it does not endorse this website, validate personal inputs or establish professional suitability.
Sources
Educational and planning information only. Sources are attributed background or formula references, not endorsements. Verify consequential decisions with an appropriate qualified professional.