Refinancing Cash Out 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
-189.92
Refinance Calculator
Current monthly payment
1,688.02
New monthly payment
1,877.94
New loan amount
305,000.00
Cost of discount points
0.00
Total up-front cost
5,000.00
Cash due at closing
0.00
Interest left on the current loan
256,404.68
Interest on the new loan
371,055.84
Lifetime interest saved
-114,651.16
Lifetime saving after costs
-114,651.16
Cash received
50,000.00
New loan-to-value
61.00 %
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.
The new payment is not lower than the current one, so there is no monthly saving to recover the costs.
Cash taken out is new secured debt against the same collateral, repaid with interest over the whole new term.
Rolling 5000 of costs into the balance means you pay interest on them for 360 months.
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 6.5% over 300 months = 1688.02
  2. New loan = 250000 payoff + 50000 cash + 5000 financed costs = 305000
  3. New payment = PMT on 305000 at 6.25% over 360 months = 1877.94
  4. Monthly saving = 1688.02 - 1877.94 = -189.92
  5. There is no monthly saving, so the costs never break even.
  6. Interest left on the current loan 256404.68 versus 371055.84 on the new one: a cost of 114651.16

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