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🏡 Mortgage Refinance Calculator

Use this mortgage refinance calculator with closing costs to compare keeping your current loan with up to two refinance offers in the US or Canada. Compare monthly payments, remaining debt and net savings at the same holding period.

🧮 Compare your mortgage options

USD · United States · Fixed-rate, monthly payments

Current mortgage

Enter your outstanding principal and remaining repayment schedule—not the original loan amount and original term.

USD
% / year
months

300 months = 25 years. Enter the remaining number of payments.

Refinance offer A

Use your lender's quoted interest rate and remaining amortization period.

% / year
months

360 months = 30 years. This is the full new amortization, not the Canadian contract term.

Add closing costs, points, penalties, extra payments or cash-out under Advanced options. Leaving them at zero may overstate savings.

Compare at the same future date

Your decision can change depending on how long you expect to keep the mortgage or home.

months

60 months = 5 years. Compare costs and remaining debt at this date.

USD

Used only to display loan-to-value (LTV), not loan eligibility.

📊 Your refinance results

Enter the required loan details to see your comparison.

Required fields are marked *. Use “Try example” for a demonstration; example rates are illustrative, not current lending offers.

⚠️ Planning estimate, not a lending offer

This calculator models fixed-rate mortgages with monthly principal-and-interest payments. It excludes property tax, home insurance, PMI, taxes, future market rates, investment returns and the time value of money. Enter lender-quoted closing costs and early-break penalties; actual terms, fees and eligibility vary. Do not base a loan decision on the displayed payment alone.

🧮 How this calculator works

Refinance mortgage payments in the US and Canada

For a loan balance P, monthly interest rate i, and n remaining monthly payments, regular principal-and-interest payment is P × i / [1 − (1 + i)−n]. At 0% interest, the payment is P / n.

For the US fixed-rate model, the monthly rate is the nominal annual rate divided by 12. For the Canadian fixed-rate model, the equivalent monthly rate is (1 + annual nominal rate / 2)1/6 − 1, reflecting semiannual compounding. Use annual rates as decimals in these formulas: 6% means 0.06. Only fixed-rate mortgages with monthly payments are modeled, not adjustable-rate or variable-rate loans.

Compare mortgage refinance savings at your holding period

For each loan, the model calculates cumulative principal-and-interest paid by month t, the remaining mortgage balance, and any upfront cash fees. For a refinance, the amount of net cash-out received is offset as a separate cash flow. The difference between keeping your current mortgage and refinancing is the estimated net loan cost savings at that point.

A lower required payment can leave more debt outstanding, especially when amortization is extended. Monthly payment savings describe cash flow; positive net-cost savings mean a lower modeled financing cost at the selected date. Extra principal payments can shorten payoff and reduce interest, but contractual prepayment limits are not estimated.

Closing costs, discount points and refinancing cash

Compare quoted closing costs paid in cash with costs rolled into the new loan. Financed flat fees and penalties increase principal; financed points are included through a self-consistent principal calculation. Cash-paid points stay outside the loan. Net cash-out is additional debt received as cash, not profit; its dollar-for-dollar offset excludes investment returns and changes to other debts.

Worked example (illustrative, not live rates)

In the US example, a USD 300,000 balance at 6.5% with 300 months remaining is refinanced at 5.5% over 300 months, with USD 3,500 of cash closing costs and no cash-out or extra payments. Regular monthly principal and interest falls from USD 2,025.62 to USD 1,842.26, a USD 183.36 decrease. At 60 months, modeled net-cost savings are USD 11,373.45. Simple cash-flow break-even is about 19.1 months; net costs are first recovered in month 15. Select US and Try example to reproduce these figures. The Canadian preset instead uses CAD 350,000, the same rates and amortization, CAD 3,500 cash closing costs and a CAD 2,000 entered break penalty, with 36 months left on the current contract and a new 60-month term. Its post-term rates are assumed unchanged, not forecast.

Frequently asked questions

Is refinancing my mortgage worth it after closing costs?

Refinancing has a lower modeled cost only when net savings are positive at your chosen holding period. Compare keeping your current mortgage with up to two refinance offers, including closing costs and the debt still owed at that date. A lower monthly payment alone does not establish savings.

How do 15-year and 30-year refinance terms compare?

Enter 180 or 360 months for the new amortization to compare a 15-year and a 30-year refinance. Extending repayment can lower monthly principal and interest while increasing total interest and the debt left at your selling date. Compare both offers at the same holding period, not just by payment size.

How does this mortgage refinance break-even calculator work?

Simple cash-flow break-even divides upfront cash costs by initial monthly payment savings, only when applicable. Net-cost break-even compares payments, upfront costs and remaining debt each month, offsetting net cash-out received. An initial tie is not a benefit; identical modeled costs have no economic difference. Recovering costs is distinct from positive savings, and savings can later turn negative.

What does cash-out refinancing mean here?

Cash-out increases the new mortgage principal to provide funds to the borrower. The calculator models net cash received as a separate cash flow when comparing equivalent financial positions. Cash-out is borrowed money, not refinancing profit.

Can I roll refinance closing costs into the new loan?

Select Add to new loan for each cost your quote finances, or Pay in cash for upfront costs. Rolling closing costs into the loan increases principal and may add interest; zero cash paid today does not mean zero refinancing cost. Compare both payment methods using the same holding period.

How are discount points calculated?

One discount point is 1% of the final new loan principal. Cash-paid points count as upfront costs, while financed points increase principal. For financed points, the engine solves new principal = (current balance + net cash-out + other financed costs) / (1 - points percent / 100). It does not infer a rate reduction: enter the quoted rate.

How does mortgage refinancing in Canada differ in this calculator?

The Canadian fixed-rate model converts a nominal annual rate compounded semiannually to an equivalent monthly rate. Mortgage term is the contract period; amortization is the repayment horizon. After expiry, the model uses your hypothetical renewal rate, or keeps the entered rate unchanged if no assumption is supplied. Neither is a forecast.

Can I model refinancing before renewal in Canada with a prepayment penalty?

Yes, by entering the remaining contract months and an actual lender-quoted break penalty. The calculator does not estimate interest rate differential or three-month-interest penalties. Ask your lender for the amount and other discharge costs before comparing offers. Extra payments may also have contract limits or charges that this model does not calculate.

Does this include taxes, insurance, PMI or mortgage approval?

No. The comparison focuses on principal, interest, entered refinancing costs, cash-out and debt balance. It excludes property taxes, insurance, PMI, taxes on transactions, discounting, and underwriting decisions. LTV is informational only.

How does selling in five years affect refinance savings?

Use a 60-month holding period to compare refinancing costs and savings if you expect to sell or refinance again in five years. Both options include the mortgage balance still owed then. If your current mortgage has only five years left, enter 60 as its remaining amortization too. The supported holding horizon is 0 to 600 months.

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