Should I Refinance?

There are many reasons people refinance their homes. From lowering monthly payments, to home improvement projects, or paying off debt —refinancing can be a great tool to give you the financial flexibility you need. However, when you refinance at a lower interest rate, you usually pay refinancing costs including points, fees, and closing costs. This calculator will tell you if the amount you save in interest will exceed the refinancing costs. The calculated results depend on how long you plan to keep the property.

Existing Loan
Original Loan Amount
Enter the initial amount of your mortgage.

Original Mortgage Length
Specify the original term of your mortgage in months or years.
[ ] Months
[ ] Years

Date of Loan
Enter the date when your current loan started.

Current Interest Rate
Input the interest rate of your existing mortgage.

New Loan
Amount You Wish to Cash Out Upon Refinance
Enter the amount you wish to cash out if applicable.

New Interest Rate
Enter the interest rate for your new loan.

Points
Enter any points you plan to pay for the refinance.

Fees and Closing Costs
Enter the total fees and closing costs associated with refinancing.

New Loan Term
Specify the term of your new loan in months or years.
[ ] Months
[ ] Years

Other Information
Your Income Tax Rate
Enter your combined federal and state tax rate.

Your Savings Rate (or Investment Rate of Return)
Enter the interest rate you expect to earn on savings or investments.

How Long You Will Keep This Property
Indicate how long you plan to stay in this property.
[ ] Months
[ ] Years

Calculator Results
The results from the calculator will give you a clear picture of whether refinancing makes financial sense for you:

Immediate Costs: Refinancing will immediately cost you $XXXXXX to cover the loan origination fees.
Break-Even Point: It will take XX months before the savings in interest offset the origination fees.
Long-Term Savings: If you plan to stay in this property for XX years, you will save $XXXXX.

Refinancing can be a smart financial move, but it’s important to understand all the costs involved and how long it will take to recover them. We’re here to help you make an informed decision that best supports your financial goals and homeownership plans. Reach out to a Home Loan Specialist today to explore all of your options and to get started.