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Refinance Savings Calculator

Thinking about refinancing your mortgage? The Refinance Savings Calculator helps you estimate how much you could save by switching to a new loan with a lower interest rate, different term, or both—so you can make smarter, financially sound decisions.



Refinance Calculator

Results

Loan-to-Value (LTV): -%

Total Current Monthly Payment: $-

New Estimated Monthly Payment: $-

Monthly Savings: $-

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What is Refinance Savings Calculator

A Refinance Savings Calculator is a tool that helps homeowners determine whether refinancing their current mortgage can lead to meaningful financial savings. Refinancing involves replacing your existing home loan with a new one—often with a lower interest rate, a shorter term, or even a switch from a variable to fixed rate. While the goal is usually to reduce monthly payments or total interest costs, refinancing may also involve closing costs or fees.

This calculator is designed to provide a clear comparison between your existing mortgage and the potential refinance offer. It allows you to visualize both short-term benefits—like lower monthly payments—and long-term savings over the full life of the loan, factoring in the cost of refinancing.




How it works

Refinance Savings Calculator Works

The Refinance Savings Calculator works by collecting data from your current mortgage, such as the remaining loan balance, current interest rate, monthly payment, and time left on the term. Then, you input the details of your potential new loan: proposed interest rate, new loan term, and any applicable closing costs.

The tool then compares the two scenarios side by side—calculating how much you’d save in monthly payments and how much you’d pay or save over the full term of the new loan. It also shows your break-even point: the number of months it will take for your monthly savings to cover the cost of refinancing. This insight is crucial because even a lower interest rate doesn’t always mean savings if you don’t plan to stay in the home long enough. With this tool, you can confidently evaluate if refinancing makes sense for your current financial situation and long-term goals.



Frequently Asked Questions

What is the main benefit of using a refinance savings calculator Toggle
It shows you the actual dollar amount you could save—or lose—by refinancing, factoring in monthly payments, interest, and closing costs.
How do I know if refinancing is worth it Toggle
If your break-even point is sooner than the time you plan to stay in the home, refinancing may be financially worthwhile.
Does the calculator include closing costs Toggle
Yes, it allows you to enter estimated closing costs so you can see how they affect your total savings and break-even point.
Can I refinance to change the loan term Toggle
Absolutely. You can switch to a shorter term to pay off your mortgage faster and save more on interest, or extend the term to reduce monthly payments.
Will refinancing affect my credit score Toggle
Yes, applying for refinancing triggers a hard credit inquiry and may cause a small, temporary dip in your score. But the long-term savings can outweigh this minor impact.