Mortgage Refinancing Calculator
Steps to Understand Your Potential Savings from Mortgage Refinancing
Step 1: Enter your current loan
- Current balance and interest rate
- Monthly principal & interest (P&I only)
- Remaining loan term in months (months left on your current loan)
Step 2: Enter your refinance option (Option A)
- New loan amount – leave blank to default to your current balance; increase for cash-out, decrease if you plan to pay down
- New rate and term
- Estimated closing costs and lender credit, if receiving lender credit to cover closing costs
Step 3: Choose how you will handle closing costs
- Pay upfront: costs reduce net savings
- Roll into loan: costs increase loan balance
- Use lender credit: reduces or offsets closing costs
Step 4: Select your Savings Horizon (most important)
How the Horizon works
Most homeowners refinance, sell, or move before the loan is paid off—so horizon-based savings is usually the most realistic view.
This calculator compares total P&I paid on your current loan vs. Option A over the horizon you select (including how you handle closing costs).
Default is Full Loan Term for a long-run view. For real-life planning, use the Horizon slider to test shorter timelines (ex: 3, 5, 7, 10 years).
Why “Full Loan Term” can show negative savings (and still be correct):
If your current monthly P&I is high enough to pay the loan off earlier, you may stop making payments sooner, while a refinance can stretch payments over more months. That can make “Full Term” savings look worse even when the monthly payment drops.
✅ Tip: If you expect to move or refinance again, focus on your expected horizon (often 3–7 years) instead of lifetime savings.
Payment Change
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Break-even
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Savings @ Horizon
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Payments shown are principal & interest only.
Refinance Savings Calculator
Compare your current mortgage to one refinance option. Edit any field at any time.
Current Loan
Refinance Option A
Closing Cost Handling
?
Savings Horizon
Horizon: Full term
Tip: horizon-based savings are usually more realistic than “lifetime” savings.
Results
Current
Option A
Monthly P&I
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Rate
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Net Savings @ Horizon
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Break-even (months)
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Total Interest Paid @ Horizon
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Monthly Add-on (MI) ?
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Adjust inputs above to see your savings.
Next Steps
By continuing, you acknowledge results are estimates and not a loan commitment.
Reliance Financial | NMLS #309198
This calculator provides estimates for informational purposes only and does not constitute an offer, approval, or commitment to lend.
Actual terms, rates, payments, and costs may vary based on credit, loan program, property, occupancy, loan amount, LTV, DTI,
market conditions, and other factors. Payments shown are principal & interest only unless optional MI is added.
“No-closing-cost” typically means certain closing costs are covered by a lender credit, often in exchange for a higher interest rate.
Prepaid items (interest, taxes, insurance) may still apply depending on escrow setup.
Frequently Asked Questions
This calculator compares principal and interest (P&I) only to keep results consistent. Escrow items vary by property and location and can be reviewed in a personalized quote.
Enter the loan balance you want after refinancing. Use a lower amount to pay down principal or a higher amount to roll in costs or take cash out.
A break-even of 0 months may occur when closing costs are fully offset by a lender credit. “—” may appear when costs are rolled into the loan.
Savings are estimates based on the information entered by user. Final numbers depend on credit profile, loan program guidelines, property details, and market conditions.
Contact us at (888) 9-RELFIN to speak with our licensed mortgage advisors for a personalized consultation.
No. This calculator is for planning purposes only. Our licensed mortgage advisors can provide a personalized quote and confirm eligibility.
A lender credit is a credit applied to closing costs, typically in exchange for a slightly higher interest rate. This can reduce out-of-pocket cash at closing.
Savings depend on how many years (aka horizon) you keep the loan. A refinance can look great over 7 years but less compelling over 2 years if closing costs haven’t been recovered yet. Use the slider in the Savings Horizon bar to select the number of years you plan to keep your mortgage. The default horizon period is the full term of the loan, for example, 30 years on a 30-year fixed mortgage.
Closing costs vary by loan size, state, property type, and program. The most optimal way to get accurate numbers is via a personalized quote from our licensed mortgage advisor. Contact us at (888) 9-RELFIN.
Refinancing can still make sense even if you plan to sell or move in a few years. This calculator uses a customizable savings horizon slider to show whether monthly savings outweigh closing costs over your expected time in the home. If your break-even period is shorter than your planned ownership timeframe, refinancing may still be beneficial. Use the slider in the Savings Horizon box to specify the number of years you plan to keep your new mortgage.
