Mortgage Refinance Calculator
Compare your current mortgage with a refinance offer. See monthly savings, break-even months, and lifetime interest cut. US/EU/CA-friendly math, no signup.
Mortgage Refinance Calculator
Enter your current mortgage on the left, the refinance offer on the right. Closing costs go below. The tool computes monthly savings, lifetime savings, and break-even months instantly.
📋 Current mortgage
✨ Refinance offer
How to Use the Mortgage Refinance Calculator
Look up your current mortgage balance
Your most recent statement shows the remaining principal — that's the figure to enter in Remaining balance. Use the principal, not your home's market value.
Enter your current rate and years left
Your current APR is on the loan statement. Years left is the remaining term — a 30-year loan opened 4 years ago has 26 years left.
Enter the refinance offer details
The Loan Estimate (LE) document from a lender shows the offered rate and term. Most US refinances are 15-, 20-, or 30-year fixed. Use the APR from the LE, not the headline note rate.
Add your closing costs and read the verdict
Closing costs typically run 2-5% of the loan amount in the US. The tool computes break-even months — the number of months your monthly savings need to cover those closing costs.
Mortgage Refinancing in the United States — When the Math Actually Works
The Refinance Decision: Three Numbers That Matter
US homeowners refinance for one of three reasons: lower the monthly payment, cut the total interest paid, or pull cash out. The math is identical to a fresh mortgage — what changes is what you're trading. Every refinance carries closing costs (lender origination, title insurance, appraisal, government recording fees), and those costs need to be recovered through interest savings before the refinance is genuinely a win. According to the Consumer Financial Protection Bureau, average US closing costs run 2-5% of the loan amount, with refinance closing costs slightly lower than purchase closing because there is no buyer's title insurance and no purchase-side documentary stamps.
The single most important number in any refinance decision is the break-even point: how many months of monthly savings does it take to recoup the closing costs? If you save USD 200 per month and pay USD 4,500 in closing, your break-even is 22.5 months. If you plan to stay in the home longer than that, the refinance compounds in your favor. Sell or refinance again before then and the closing costs absorb most of the gain.
The second number is lifetime interest. Refinancing into a fresh 30-year loan when you only had 22 years left on your old mortgage doesn't just cut your rate — it resets the clock. Even at a meaningfully lower rate, the longer amortization can mean more total interest paid over the life of the loan. The Freddie Mac Primary Mortgage Market Survey publishes weekly average rates and is the canonical reference US lenders price against.
When Refinancing Makes Sense (and When It Doesn't)
The classic rule of thumb — refinance when rates drop 1 percentage point — was useful when origination fees were higher and online comparison shopping wasn't normal. Today, the right test is the break-even point against how long you plan to keep the home. A 0.5pp drop on a USD 400,000 loan saves roughly USD 130 per month; against USD 6,000 in closing costs, that's a 46-month break-even. Plausible if you're staying 5+ years, marginal otherwise.
Refinancing also makes sense to remove private mortgage insurance (PMI). If your home appreciated enough that your loan-to-value (LTV) ratio dropped below 80%, a refinance can drop the PMI premium — typically USD 30-70/month per USD 100,000 of loan. That's a structural saving that compounds regardless of rate movement. The CFPB's mortgage shopping guide recommends collecting at least three Loan Estimates and comparing the APR (not the note rate) to capture all fees.
"On a USD 300,000 loan, every 0.25 percentage point of rate matters: it shifts the monthly payment by roughly USD 45 and the total 30-year interest by roughly USD 16,000."
Cash-Out, Rate-and-Term, and Stream-Lined Refinances
There are three flavours of US refinance worth knowing. A rate-and-term refinance swaps your loan for one at a different rate or term, without taking equity out. A cash-out refinance increases the loan balance and gives you the difference in cash — typically capped at 80% LTV. A streamline refinance (FHA, VA, USDA) skips the full appraisal and income verification on certain government-backed loans, lowering closing costs at the price of being limited to similar-or-lower payments.
For Europeans, the analogous instruments are a remortgage to a new lender (the UK term) or an "Umschuldung" in Germany — same math, different paperwork and different early-repayment regimes. EU mortgage early-repayment charges are capped under the EU Mortgage Credit Directive (2014/17/EU); US mortgage prepayment is generally penalty-free after the first year for conforming loans (Fannie Mae / Freddie Mac eligible), but jumbo and non-QM products may still carry prepayment penalties — always check the loan note.
The calculator above models the rate-and-term case explicitly. For a cash-out refinance, increase the "remaining balance" input by the cash you want to extract before running the comparison — the result will be conservative because cash-out rates are typically 0.25-0.50pp higher than rate-and-term, and you should ask your lender what the cash-out premium is on the offer.
10 Facts About US Mortgage Refinancing
The Freddie Mac PMMS weekly survey is the most widely-cited benchmark for US 30-year fixed mortgage rates — published every Thursday.
The CFPB's Loan Estimate is a federally-standardised three-page document — lenders must deliver it within three business days of an application.
Closing costs on a US refinance typically run 2-5% of the loan amount; that's USD 6,000-15,000 on a USD 300,000 loan.
Mortgage interest is tax-deductible in the US on up to USD 750,000 of principal for loans originated after Dec 15, 2017 (IRS Pub 936).
Private Mortgage Insurance (PMI) automatically terminates when the loan reaches 78% LTV based on the original amortization schedule (Homeowners Protection Act).
The APR on a Loan Estimate includes points and most lender fees — comparing APRs across offers is the apples-to-apples comparison, not the headline note rate.
Conforming loans (Fannie Mae / Freddie Mac eligible) generally have no prepayment penalty after the first 12 months — a key advantage over many non-QM loans.
A 0.25 percentage point drop on a USD 300,000 30-year mortgage cuts the monthly payment by roughly USD 45 and saves USD 16,000 over the life of the loan.
The EU Mortgage Credit Directive caps early-repayment charges across EU member states, making remortgaging structurally cheaper in Europe than for some US non-QM products.
The break-even rule of thumb: divide closing costs by monthly savings to get break-even months. Under 36 months is generally considered an attractive refinance.
Frequently Asked Questions
-
The break-even point is the number of months your monthly savings need to cover the closing costs. If your refinance saves USD 250/month and closing costs are USD 5,000, break-even is 20 months. After that point every month is net savings. If you sell or refinance again before break-even, the closing costs absorb most or all of the gain. A break-even under 36 months is generally considered attractive; over 60 months is hard to justify unless you're certain you'll keep the loan that long.
-
Per the Consumer Financial Protection Bureau, closing costs on a US refinance typically run 2-5% of the loan amount. On a USD 300,000 loan, expect USD 6,000-15,000 in total closing fees, including lender origination, appraisal (USD 400-700), title insurance (USD 700-2,000), recording fees, and prepaid interest. Some lenders offer "no closing cost" refinances — these roll the costs into a slightly higher rate (typically 0.125-0.375pp) instead of charging cash upfront. Run the math both ways.
-
Compare APR, not note rate. The note rate is the headline interest rate; the APR includes points, lender origination, and most of the costs you'll pay to get the loan. APR is the apples-to-apples comparison required by the federal Truth in Lending Act. Two offers with the same note rate can have very different APRs depending on the fee structure. Lenders are required to disclose APR on the Loan Estimate within three business days of your application.
-
Yes — by default. If you're 6 years into a 30-year mortgage and refinance into a new 30-year, you've added 6 years of payments. Even at a lower rate, the longer amortization can mean more total interest. To avoid this, refinance into a 15-, 20-, or "custom" term that matches your remaining years. A 24-year refinance keeps you on your original payoff date and most lenders will accommodate custom terms — ask. The tool above shows lifetime interest impact so you can see the trade-off explicitly.
-
A rate-and-term refinance swaps your existing loan for one at a different rate or term, with no cash extracted — the new principal equals your current remaining balance plus rolled-in closing costs. A cash-out refinance increases the loan balance beyond what you owe and gives you the difference as a lump sum. Cash-out is typically capped at 80% loan-to-value, and the cash-out rate is usually 0.25-0.50pp higher than the rate-and-term offer. Cash-out can be useful for funding renovations or consolidating high-rate debt, but pulls equity out and resets the amortization.
-
Yes. If your home value rose enough that your loan-to-value (LTV) ratio dropped below 80%, refinancing into a new loan without PMI is a real structural saving — typically USD 30-70/month per USD 100,000 of original loan amount. Note that the federal Homeowners Protection Act automatically terminates PMI at 78% LTV on the original amortization schedule (even without refinancing), so check whether you're close to that automatic drop before paying refinance closing costs just to remove PMI.
-
A streamline refinance is a simplified process available on certain government-backed loans — FHA, VA, and USDA. It skips the full appraisal and income re-verification, lowering closing costs and shortening the timeline. The trade-off is that streamline refinances are restricted to similar-or-lower monthly payments (no cash-out), and you stay within the same loan program. If you have an FHA loan and rates have fallen, an FHA streamline is often the lowest-friction way to capture the savings.
-
The Freddie Mac Primary Mortgage Market Survey (PMMS) publishes every Thursday at 10am ET. It surveys roughly 80 lenders nationwide on the rates they're offering for a 30-year fixed-rate mortgage to qualified borrowers. The PMMS is the most widely-cited US mortgage benchmark and is the rate the financial media reports as "the average 30-year mortgage rate this week". Your actual offered rate depends on your credit score, LTV, loan size, and property type — it can be meaningfully above or below the PMMS headline.
-
US 30-year fixed-rate mortgages dominate the residential market — a structural product that doesn't really exist in most of Asia. Singapore and Malaysia mortgages are typically floating-rate (SORA or Base Rate-linked) with 2-3 year fixed teaser periods and lock-in penalties of 1-1.5% if you refinance early. In Singapore, the equivalent action is "loan repricing" (staying with your bank, switching package) or "refinancing" (moving to a different bank) — and the Total Debt Servicing Ratio (TDSR) rules apply to both. Closing costs in Asia are typically lower (USD 1,000-3,000 equivalent) but the rate-decision tempo is faster because most products reset every 1-3 years. If you have a Singapore mortgage, see our Singapore Mortgage Calculator.
-
It's harder but feasible. US mortgage lenders rely heavily on FICO scores, and a fresh expat with under two years of US credit history will struggle to qualify for the best conforming rates. The practical paths are: (a) wait until you have 2+ years of US credit and a 740+ FICO; (b) approach lenders that specialise in foreign-national or "newcomer" mortgages — Citi, HSBC, and some credit unions have programs for this; (c) make a larger down payment (30-40% LTV is more forgiving on credit thinness); (d) use a US co-signer with established credit. Closing costs and rates for foreign-national mortgages typically run 0.5-1.0pp higher than conforming rates.
Related News
You may be interested in these recent stories from our newsroom.
-
Snowflake jumps 36 per cent in a day on an earnings beat and a US$6 billion AWS chip deal
Snowflake had its best day as a public company on 28 May, closing up 36 per cent after a clean first-quarter beat and a five-year, US$6 bill...
-
MAS Scraps Mandatory Financial Advice for Most Complex Product Buyers in Retail Shake-Up
Singapore retail investors buying structured notes, derivatives and investment-linked policies will no longer need mandatory financial advic...
-
SEC Rewrites Float Rules, PSE Moves to Implement Them — Clearing the Path for GCash's USD 1B Philippine IPO
The SEC lowered the public float floor for large Philippine issuers in February 2026. The PSE followed with a consultation paper in April. T...
75 more free tools
Calculators, converters, security tools — no signup.