Refinance Calculator

Refinancing is the process by which an old loan is replaced by a new one. The term of the loan may change, for example, from 15 to 30 years. The rate of interest may also decrease or change from fixed to variable or vice versa.

The refinanced loan can also be for a larger amount. This scenario is what is called a "Cash Out" refinance. If you need cash for home repairs or other expenses, this is typically a great way to conveniently roll the extra debt in with your mortgage payments.

Enter your original loan amount: $
Enter your original term:
years
Enter the number of months already paid: months
Enter your current interest rate: %
Enter the number of years you plan to sell in: years

New Loan Information:

Enter any loan points you plan to purchase:
%
Enter your interest rate:
%
Enter the term of your refinanced loan: years
Enter the closing costs required for refinancing: $



Refinancing : When is the right time to refinance?

Knowing if it is the right time to refinance depends on multiple factors. First of all, how much rates have dropped if any. Drops in interest rates usually signal that refinancing is something to consider. However, If you have made improvements in your credit since acquiring your loan, even without rate drops you may qualify for a lower interest rate.

In general, given a proposed new interest rate on your loan, knowing if it is the right time to refinance depends upon your break-even date. The break-even date is the day on which refinancing would pay for itself. In other words, on your break-even date you have recouped all of the fees for refinancing and every month after you save money. This brings about an important question of how long you plan to stay in your home. If you plan to stay in your home at least as long as the break-even date, you will save money by refinancing in the long run.

This calculator is intended for educational use only and does not provide you with a quote. To truly know if it is the right time to refinance you should speak with a lending professional. Our site has a network of lenders licensed in all 50 states and they can provide you with competitive no obligation quotes on your refinance. Click here to apply online and get the process started.