Refinance Mortgage Payment Calculator

Are you struggling to pay your mortgage bills on time or at all? Is your mortgage stressing you out? Did you get locked into a high interest rate when you originally signed up? If you answered “yes” to any of those questions, mortgage refinancing might be the answer.

  • Refinance Mortgage Payment Calculator
  • What is mortgage refinancing?

There are several good reasons to refinance a mortgage. You may qualify for a lower interest rate due to your credit, or thanks to federal interest rates decreasing. Perhaps you want to lower your monthly mortgage payment, or minimize financial risk, or shorten the loan term. This refinance mortgage payment calculator can be used to see how applying a lower interest rate will affect your mortgage. The hundreds of dollars you may save with refinancing can result in tens of thousands of dollars in savings over the duration of the loan. When you’re finished, you can download your calculations as a PDF.

Refinance Calculator

Proposed Mortgage

Please fill out this form

First Name*
Last Name*


Mortgage Amount:
Interest Rate:
Number of Years:
Mortgage Closing Costs:
Mortgage Points:
New Monthly Payment:
Monthly Savings:
Total Closing Costs:
Months to Break Even:


Save as PDF

By using this calculator you agree to terms and conditions. These calculators are designed to be informational and educational tools only, and when used alone, do not constitute investment or financial advice. We strongly recommend that you seek the advice of a financial services professional before making any type of investment or deciding on your financial matters. This model is provided as a rough approximation of future financial performance. The results presented by this calculator are hypothetical and may not reflect the actual growth of your own investments. We can't take into account potential lender fees, payoff schedule can be longer than in the estimation. Mortgagecalculator and its affiliates are not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by these tools. Mortgagecalculator is not responsible for any human or mechanical errors or omissions.

Step-by-Step Instructions for Using the Refinance Mortgage Payment Calculator

Please note that some inputs can be either manually entered in the correct box or adjusted using the sliding scale.

  1. Enter the current payment.
  2. For the proposed loan, input the mortgage amount and the interest rate.
  3. Enter the number of years.
  4. Add any closing costs for which you would expect to be responsible.
  5. Select the Mortgage Points that you would apply to the loan.

Refinance Mortgage Calculator 2020 Example

The refinance mortgage payment calculator will adjust your results in real time as you enter the information.

Refinance Calculator Results

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Important Terms And Definitions

  • Amortization – The regular payments of a debt over time.
  • Current Payment – The monthly amount that is currently reimbursed to your lender for your mortgage.
  • Interest Rate – A percentage of the loan that represents the cost of the loan.
  • Months to Break Even– The time, in months, that it will take to recover the cost of refinancing.
  • Mortgage Amount – The amount to be borrowed for the proposed mortgage loan.
  • Mortgage – A legal contract where a lender provides financing in exchange for holding the title of the borrower’s property. The borrower receives the money and will pay it back with interest. When the lender is completely repaid, the borrower receives the title.
  • Mortgage Closing Costs – The costs beyond the mortgage price, which is normally applied to complete the real estate purchase. The buyer, the seller, or both may be responsible for the closing costs.
  • Mortgage Points – Also known as Percentage Points. The original fees which are charged by the lender, equivalent to 1% of the mortgage loan.
  • Number of Years – The length of the mortgage.
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How to Interpret the Results of the Refinance Mortgage Payment Calculator

The results will be shown in the form of a table that gives a summary of all the information. It displays your inputs, plus your new monthly payment for the proposed mortgage. The table shows your monthly savings, which would be the difference between your current and proposed monthly payments. Your total closing costs would be a one-time payment. Finally, the table will display the number of months it will take for you to break even.

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Worked Examples

You currently pay $2500 on your 30-year mortgage. Instead, you would like to move to a $250,000 20-year mortgage with a 6% interest rate. You expect your closing costs to be $500 and you can provide 1.000% in mortgage points.

Mortgage Refinance Calculator Example

As your table of results show, your new mortgage payment is $1791.08, a savings of just over $700 from what you pay now. Even with relatively high total closing costs at $3000, it will take you less than 6 months to break even. This is a great return on investment (ROI).

Mortgage Refinance Calculator Results

You decide to investigate a 15-year loan with a 5% interest rate instead. You will use the following inputs:

Refinance Mortgage During Covid 19 2020 15-Year Example

With this loan, your results show lower monthly savings at $1976.98. This is to be expected because you’re paying off the same loan in less time. However, you would still realize a monthly savings of over $500, with the same amount in closing costs. You should still expect to break even within 6 months.

Refinance 15-Year Mortgage Calculator Results

How does mortgage refinancing work?                        

During mortgage refinancing your old mortgage will be paid off and replaced by a newer mortgage with adjusted terms. The original loan is usually paid via home equity. Home equity is created when your home is worth more than your mortgage.

When is refinancing a good option?

Refinancing is ideal for people with good credit and/or a high amount of equity on their homes. You are far more likely to get a great interest rate if you have one or both of these factors going for you.

If you’re not struggling to pay your mortgage refinancing might still be a good idea. If your home has gone up dramatically in value and you have a high level of equity or you purchased your home a long time ago and your credit has steadily improved by then you can probably negotiate a lower interest rate, and that is always a good thing.

When is refinancing a bad idea?

It might sound counter intuitive, but refinancing isn’t always a good idea. There are often a whole host of costs associated with refinancing your mortgage. Many mortgages have a clause enabling them to charge a fee in order to refinance your loan. These fees vary greatly and can end up being thousands of dollars. You’ll also want to pay a lawyer to help you refinance your loan, make sure you get the best deal, and assist you with paperwork.

Depending on your credit score, the deal you’re able to get might not be worth all the extra costs you have to pay to get it. If you only have a mediocre or bad credit score you’re less likely to get a deal that’s actually worth all the hassle and extra costs.

When can you refinance?

Most lenders will allow you to refinance your mortgage as soon as 12 months after you’ve signed the contract, although each lender has different terms. The information should be easy to find in your mortgage contract.

Refinancing your mortgage is a big deal. Make sure you run the numbers using a refinancing mortgage payment calculator to figure out whether or not it’s worth doing.

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