Mortgage 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.
Points as a percentage of the new loan amount, paid to buy the rate down.
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
308.14
Refinance Calculator
Current monthly payment
1,807.02
New monthly payment
1,498.88
New loan amount
250,000.00
Cost of discount points
0.00
Total up-front cost
4,500.00
Cash due at closing
4,500.00
Break-even point
15 month
Interest left on the current loan
292,103.60
Interest on the new loan
289,593.37
Lifetime interest saved
2,510.23
Lifetime saving after costs
-1,989.77
Cash received
0.00
Change in months to payoff
60 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 250000 at 7.25% over 300 months = 1807.02
  2. New loan = 250000 payoff + 0 cash = 250000
  3. New payment = PMT on 250000 at 6% over 360 months = 1498.88
  4. Monthly saving = 1807.02 - 1498.88 = 308.14
  5. Break-even = 4500 of cash cost / 308.14 a month = 15 months
  6. Interest left on the current loan 292103.6 versus 289593.37 on the new one: a saving of 2510.23

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