How to use the Refinance Calculator
Estimate estimated refinance savings from current loan data, remaining balance, monthly payment with the Refinance Calculator. Use it as a planning baseline, then compare the estimate with current rates, fees, taxes, and provider terms.
Step by step
- For the Refinance example, select Refinance and enter current loan data, remaining balance, monthly payment, original loan amount, loan term, and the remaining settings listed in the worked example. Keep each value in the unit displayed beside its field.
- Review the selected Refinance workflow and inputs, then read estimated refinance savings in the result panel.
- Change one Refinance assumption at a time to compare scenarios. Use Reset to restore this tool's worked example values.
How the calculation works
Compares remaining scheduled payments with a new fixed-rate loan including points, fees, and cash-out proceeds.
Worked example
To reproduce the Refinance worked example, reset the calculator. Select the Refinance workflow. Use current loan data Use remaining balance; remaining balance $250,000; monthly payment $1,800; original loan amount $320,000; loan term 30; time remaining 22; current interest rate 6.5 %; interest rate 5.5 %; new loan term 20; points 1 %; costs and fees $2,500; cash out amount $0. The result is estimated refinance savings of $57,467.62. Current remaining payments: $475,200.00. Review the displayed units before comparing the result.
Understanding the result
The Refinance reports estimated refinance savings. Use it as a planning baseline, then compare the estimate with current rates, fees, taxes, and provider terms. Planning estimate only. Rates, fees, taxes, eligibility rules, timing, and provider terms can change the result.
How to check the answer
Check the Refinance result by entering the same current loan data, remaining balance, monthly payment in an independent statement, lender, provider, or official tool. Change one input and confirm that estimated refinance savings moves in the direction implied by Compares remaining scheduled payments with a new fixed-rate loan including points, fees, and cash-out proceeds.
Common questions
What does the Refinance calculate?
Estimate estimated refinance savings from current loan data, remaining balance, monthly payment with the Refinance Calculator.
Which inputs does the Refinance example use?
The worked example uses current loan data, remaining balance, monthly payment, original loan amount, loan term, and the remaining settings listed in the worked example in the Refinance workflow. Other workflows can show different fields. Keep the chosen workflow and units with the result when comparing calculations.
Is the Refinance result exact?
Planning estimate only. Rates, fees, taxes, eligibility rules, timing, and provider terms can change the result. Recheck current loan data, remaining balance, monthly payment and use estimated refinance savings only for a decision where that level of precision is appropriate.