Loan Details
Current Loan
Remaining amount on your current loan
Annual percentage rate (APR) of your current loan
Years remaining on your current loan
New Loan
Annual percentage rate (APR) for the new loan
Term length for the new loan
Fees associated with refinancing
Additional Options
Target monthly savings amount
Your marginal tax rate for interest deduction
Savings Results
Potential Monthly Savings
$307.29
Estimated monthly payment reduction
Total Interest Savings
$84,138
Breakeven Period
1.4 years
Current Monthly Payment
$1,686
New Monthly Payment
$1,379
18.2% SAVINGS
Loan Comparison
| Metric | Current Loan | New Loan |
|---|---|---|
| Monthly Payment | $1,686 | $1,379 |
| Total Interest Paid | $255,789 | $171,651 |
| Total Payment | $505,789 | $471,651 |
| Loan Term | 25 years | 30 years |
Interest Savings Over Time
How to Use the Loan Refinancing Calculator
Enter Your Current Loan Details
Start by entering your current loan balance, interest rate, and remaining term. This information is typically found on your most recent loan statement or online account dashboard.
Input New Loan Terms
Enter the interest rate and term for the new loan you're considering. Research current market rates or use quotes from lenders. Don't forget to include estimated closing costs.
Review Your Savings Results
The calculator instantly shows your potential monthly savings, total interest savings, and breakeven point. The breakeven tells you how long it takes to recover closing costs.
Refinancing Tips for Maximum Savings
- Compare multiple lenders: Get at least 3-4 quotes to ensure you're getting the best rate.
- Consider loan term: Shorter terms usually have lower rates but higher payments.
- Check your credit score: Better credit typically qualifies for better rates.
- Calculate breakeven carefully: Only refinance if you plan to stay in the home long enough to pass the breakeven point.
- Factor in all costs: Include appraisal, title insurance, and origination fees in closing costs.
Pro Tip: Use the "Save This Scenario" button to compare different refinancing options side by side. This helps you make the most informed decision.
Understanding Key Metrics
Monthly Savings
Reduction in your monthly payment after refinancing
Breakeven Period
Time needed to recover closing costs through monthly savings
Interest Savings
Total interest saved over the life of the loan
Total Savings
Combined savings from reduced payments and interest