How to figure out when it makes sense to refinance your mortgage

Refinance your mortgage when doing so will save money or give you financial flexibility.

Refinance Calculator

Current Loan Details

Current monthly payment (principal and interest only):

Current interest rate:

Remaining balance on mortgage:

Years remaining on current loan:

New Loan Details:

New interest rate:

New loan term (in years):

How much will it cost you?

Total closing costs:

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Should I refinance my mortgage?

Here's how to determine whether you will benefit by refinancing your mortgage.

2 major types of refinances are:

• Rate-and-term refinancing to save money. Typically, you refinance your remaining balance for a lower interest rate and a term you can afford. (The term is the number of years it will take to repay the loan.)
• Cash-out refinancing, in which you take out a new mortgage for more than you owed. You take the difference in cash or you use it to pay off existing debt.

Other reasons people refinance: to replace an adjustable-rate mortgage with a fixed-rate loan, to settle a divorce or to eliminate FHA mortgage insurance.


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