The Money Friend

Refinance Calculator

Should you refinance your mortgage? See the break-even timeline, monthly savings, and total interest saved.

Refinance Calculator

Could refinancing put money back in your pocket each month?

$
$10,000$2,000,000

The remaining principal on your mortgage

7.0%
2.0%10.0%

Find this on your monthly statement or loan documents

5.5%
2.0%10.0%

The interest rate a lender has offered you

Yes, refinancing could save you $417 per month

Here's the thing

Refinancing from 7% to 5.5% drops your payment from $2,120 to $1,703. You'd recoup the $5,000 in closing costs in 1 year, then pocket $30,026 over your 7-year stay. Over the full loan, you'd save $17,889 in interest.

What I'd actually do

Get quotes from at least 3 lenders. Compare not just the rate but the closing costs and fees. Ask about "no-closing-cost" options where the lender rolls fees into a slightly higher rate. Lock your rate as soon as you find a good deal.

Current monthly payment

$2,120

7% rate, 25 years remaining

New monthly payment

$1,703

5.5% rate, 30-year term

Monthly savings

$417

Break-even timeline

1 year

Months to recoup $5,000 in closing costs

Savings over 7 years

$30,026

Monthly savings times months staying, minus closing costs

Interest on current loan

$336,101

Total interest over remaining 25 years

Interest on new loan

$313,212

Total interest over 30-year term

Lifetime interest saved

$17,889

Interest difference minus closing costs

The Money Friend

Yes, refinancing could save you $417 per month

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This calculator provides estimates for informational purposes only and does not constitute financial advice. Actual costs may vary based on your creditworthiness, location, and lender. Consult a licensed financial advisor or mortgage professional before making financial decisions.

Interest rates, payments, and loan terms shown are examples for illustration purposes only and do not represent an offer to lend, a commitment to make a loan, or a guarantee of any specific rate or term. Actual rates and terms are determined by lenders based on your individual credit profile and may differ from examples shown.

Past performance and historical data do not guarantee future results. Equal Housing Opportunity.

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