Current loan
Roughly how long is left on the current loan. Decimals are fine (e.g., 27.5).
Refinance offer
Typically 2–5% of the loan amount: origination, appraisal, title, recording.
If checked, the new loan amount is the balance plus closing costs, and you pay nothing up front.
Ledger reads
Side by side$0
saved per month with the new loan
- Current payment
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- New payment
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- Breakeven point
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- New loan amount
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- Interest left, current loan
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- Interest, new loan
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How to read this worksheet
A refinance is a trade: you pay closing costs now in exchange for a lower payment, a lower rate, or a different term. The single most useful number is the breakeven point — closing costs divided by monthly savings. If you'll keep the loan (and the house) well past that month, the refinance pays for itself; if you might sell or refinance again before then, it doesn't.
Watch the total interest lines carefully when the new term is longer than what's left on your current loan. Resetting a loan with 27 years remaining back to 30 years lowers the payment partly because you're stretching the debt over more time — which can mean paying more total interest even at a lower rate. That's not automatically wrong (cash flow has value), but the ledger shows it plainly so it's a choice, not a surprise.
One way to get the best of both: refinance to the lower rate, then keep paying your old payment amount. The difference lands on principal every month. Model that on the main calculator using the extra payment field.
Where does the "current payment" figure come from?
For a fixed-rate loan, amortizing your remaining balance at your current rate over the years remaining reproduces your actual principal-and-interest payment. It won't match your bill exactly if your bill includes escrow (taxes and insurance) — compare it against the P&I line on your statement.
Does this include taxes, insurance, or PMI?
No — like the rest of this site, it models principal and interest only. Those costs generally don't change when you refinance (though a refinance can be a chance to drop PMI if your equity has grown — see the PMI guide).
What about "no-cost" refinances?
There's no free version — "no-cost" means the costs are built into a slightly higher rate or rolled into the balance. Use the checkbox above to model rolled-in costs, or enter the lender's no-cost rate with $0 closing costs and compare honestly.
This tool is for general planning purposes only and isn't financial, legal, or lending advice. Rates, fees, and qualification vary by lender — get real quotes before deciding.