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Should you refinance your mortgage?

Are you happy where you’re living but wondering if refinancing your mortgage could save you money? The short answer is if you refinance to a lower interest rate, you probably can. But before leaping into a refinance, it’s smart to look at all of the numbers to determine exactly how much money you’ll save and if refinancing is worth it in the long run. Our Refinance Calculator can help you do just that.

The calculator lets you compare the total interest paid over the life of your loan — using your current interest rate versus a new lower interest rate. It will show you things like monthly savings, lifetime savings, and how many years it will take to break even. What do we mean by “break even”? There are some common costs when refinancing your mortgage, including fees like an origination fee, recording fee, and home appraisal. Whether you pay them up front or roll them into your new loan, the calculator takes these costs into account and determines how long it will take before your real savings begin.

There are a number of good reasons to refinance your mortgage, including debt consolidation, lower payments, or to make home improvements. With a cash-out refinance, you can pay high-interest credit cards, car loans, medical bills, and other debt, rolling everything into one convenient monthly payment. With a rate-and-term refinance, you could reduce your monthly mortgage payment and possibly pay down your principal faster.

If you opt for a cash-out refinance, you can spend the cash any way you choose. Whether you want to update your kitchen, pay for college, or buy a new car, the money is yours to spend.

Plug your current mortgage information into our Refinance Calculator and play around. Try out different numbers and scenarios to learn how a refinance could benefit you.

Refinance Calculator

Calculators are provided for illustrative purposes only. Not a commitment to lend. Other fees may apply.
Break Even
Total New Interest
Total Original Interest
New Monthly P&I
Original P&I
Monthly Difference
Lifetime Difference

30-Year Fixed-Rate Refinance Mortgage Example:
The payment on a $225,000 30-year fixed-rate refinance loan at 2.875% with a 70% loan-to-value (LTV) is $933.51 with 2 points due at closing. The Annual Percentage Rate (APR) is 3.13%. This assumes a FICO score of at least 701. Payment does not include taxes and insurance premiums, which will result in a higher monthly payment. Interest rates and annual percentage rates (APRs) are based on current market rates and are subject to change without notice. Rates offered may be subject to pricing add-ons related to property type, loan amount, LTV, credit score, and other variables. Mortgage insurance may be required for LTV >80%. If mortgage insurance is required, the mortgage insurance may increase the APR and the monthly payment. Stated rate may change or not be available at the time of loan commitment or lock-in.

15-Year Fixed-Rate Refinance Mortgage Example:
The payment on a $225,000 15-year fixed-rate cash-out loan at 2.625% with a 70% loan-to-value (LTV) is $1513.55 with 2 points due at closing. The Annual Percentage Rate (APR) is 3.070%. This assumes a FICO score of at least 701. Payment does not include taxes and insurance premiums, which will result in a higher monthly payment. Interest rates and annual percentage rates (APRs) are based on current market rates and are subject to change without notice. Rates offered may be subject to pricing add-ons related to property type, loan amount, LTV, credit score, and other variables. Mortgage insurance may be required for LTV >80%. If mortgage insurance is required, the mortgage insurance may increase the APR and the monthly payment. Stated rate may change or not be available at the time of loan commitment or lock-in.