🔄 Mortgage Refinance Calculator
Determine if refinancing your mortgage makes financial sense. Calculate your new payment, break-even point, and potential lifetime savings.
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Frequently Asked Questions
When should I refinance my mortgage?
Refinance when: 1) You can lower your rate by 0.75-1% or more, 2) You plan to stay in your home past the break-even point, 3) You want to switch from ARM to fixed-rate, 4) You can eliminate PMI, or 5) You need to tap into home equity. Current rates and closing costs determine if it makes financial sense.
What are typical refinance closing costs?
Refinance closing costs typically range from 2-5% of the loan amount, averaging $3,000-$6,000 on a $200,000 loan. Costs include appraisal ($300-500), origination fees (0.5-1% of loan), title insurance, credit report, and various lender fees. Some lenders offer no-closing-cost refinances with slightly higher rates.
How long does refinancing take?
The refinancing process typically takes 30-45 days from application to closing. Timeline includes: application and rate lock (1-3 days), home appraisal (7-10 days), underwriting (10-15 days), and final approval and closing (3-5 days). Having documents ready and responding quickly to lender requests can speed up the process.
Should I reset to a 30-year loan when refinancing?
It depends on your goals. Resetting to 30 years lowers monthly payments but increases total interest paid. If you've already paid 10 years on a 30-year loan, consider refinancing to a 20-year term to maintain your payoff schedule. Or, refinance to 30 years but make extra payments to pay it off in 20.
Can I refinance with bad credit?
Yes, but options are limited and rates will be higher. FHA Streamline refinance requires 620+ credit score. Conventional refinance typically needs 680+. If your credit has improved since your original mortgage, refinancing could still save money even if your credit isn't perfect. VA loans are most lenient.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.