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Rate and Term Refinance

Looking to reduce your mortgage interest or change the repayment period? The Rate and Term Refinance Calculator helps you estimate how adjusting your loan’s interest rate or term can impact your monthly payments and total loan cost—giving you a clear path to smarter refinancing decisions



Rate and Term Refinance Calculator

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Current Monthly Payment: $0

New Monthly Payment: $0

Monthly Savings: $0

Total Interest Savings: $0

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What is Rate and Term Refinance Calculator

A Rate and Term Refinance Calculator is a mortgage tool that helps you evaluate the potential benefits of refinancing your existing home loan by changing either the interest rate, the loan term, or both—without borrowing additional cash. Unlike a cash-out refinance, a rate and term refinance is purely focused on improving loan structure, either to lower monthly payments, shorten the payoff period, or reduce the total interest paid over time.

This calculator is especially helpful for homeowners who want to take advantage of lower interest rates, switch from an adjustable-rate to a fixed-rate mortgage, or transition to a shorter loan term. It provides a clear, side-by-side comparison of your current and proposed loan terms, allowing you to make a data-driven refinancing decision.




How it works

Rate and Term Refinance Calculator Works

The Rate and Term Refinance Calculator works by collecting essential details from your current mortgage, including the remaining balance, interest rate, and time left on the loan. You then input the proposed new rate and term. The tool calculates your new monthly payment, total interest paid over the life of the loan, and any differences compared to your current mortgage.

In addition to comparing monthly savings, the calculator also highlights how long it will take to break even on any closing costs incurred during the refinance. This insight helps you understand whether refinancing truly benefits your long-term financial goals or simply reduces short-term payments. Whether you’re looking to pay off your mortgage faster or just lower your monthly burden, this tool gives you a precise estimate of what you can expect post-refinance.



Frequently Asked Questions

What is a rate and term refinance Toggle
It’s a refinance where you change your interest rate, loan term, or both—without withdrawing equity—mainly to save on interest or reduce monthly payments
How is this different from a cash-out refinance Toggle
Rate and term refinancing doesn’t involve taking cash out. It simply restructures your loan to improve its terms or affordability.
Can I refinance to a shorter term Toggle
Yes, refinancing to a shorter term can help you pay off your mortgage faster and significantly reduce total interest paid—though monthly payments may increase.
Is there a cost to rate and term refinancing Toggle
Yes, most refinances involve closing costs like appraisal fees, lender charges, and legal costs. The calculator can help assess if savings justify the expense.
When is the best time to consider a rate and term refinance Toggle
Typically when market interest rates drop, your credit score improves, or you want to switch from an adjustable-rate to a fixed-rate loan.