Auto Refinance Calculator

Formatting only. This does not change the calculation.
The payoff amount on the loan you have today, not the original amount borrowed.
Lender, title, appraisal and recording charges from the Loan Estimate, excluding discount points.
Extra principal borrowed on top of the payoff, taken as cash at closing.
Optional. Supply it to see the new loan-to-value; leave at 0 to skip.
Monthly saving
22.02
Refinance Calculator
Current monthly payment
452.22
New monthly payment
430.20
New loan amount
18,000.00
Cost of discount points
0.00
Total up-front cost
0.00
Cash due at closing
0.00
Break-even point
0 month
Interest left on the current loan
3,706.37
Interest on the new loan
2,649.46
Lifetime interest saved
1,056.91
Lifetime saving after costs
1,056.91
Cash received
0.00
Change in months to payoff
0 month
Worked out from Board of Governors of the Federal Reserve System - A Consumer's Guide to Mortgage Refinancings and 2 other sources.
An estimate from the figures you entered. A real offer depends on credit, appraised value, loan-level pricing adjustments and the lender's Loan Estimate, and refinancing resets the amortisation clock.

How this is worked out

6 steps
  1. Current payment = PMT on 18000 at 9.5% over 48 months = 452.22
  2. New loan = 18000 payoff + 0 cash = 18000
  3. New payment = PMT on 18000 at 6.9% over 48 months = 430.2
  4. Monthly saving = 452.22 - 430.2 = 22.02
  5. Break-even = 0 of cash cost / 22.02 a month = 0 months
  6. Interest left on the current loan 3706.37 versus 2649.46 on the new one: a saving of 1056.91

Results are general information, not financial, tax, legal, medical or engineering advice.