Current Loan Details
New Loan Details
Refinance Options
💡 Refinancing Tips
- • Shop around with multiple lenders for the best rates
- • Consider all costs, not just the interest rate
- • Factor in how long you plan to stay in your home
- • Avoid cash-out refinancing unless necessary
- • Keep your loan-to-value ratio below 80% to avoid PMI
Key Features
Break-Even Analysis
Calculate when you recoup closing costs
Cash-Out Options
Access home equity for investments
Qualification Check
Estimate approval likelihood
Loan Comparison
Compare current vs new terms
Refinancing Tips
Check Multiple Lenders
Shop around with at least 3-4 lenders to compare rates and fees. Even a 0.25% difference can save thousands over the loan term.
Consider Closing Costs
Include all fees (origination, appraisal, title) in your break-even calculation. No-closing-cost loans often have higher rates.
Timing Matters
Refinance when you can lower your rate by at least 0.5-1% and plan to stay in your home past the break-even point.
Credit Score Impact
Your credit score significantly affects your rate. Consider improving your score before applying if it's below 740.
Refinancing Strategy
1Rate & Term Refinance
Lower your interest rate or change loan term without taking cash out.
- • Best for reducing monthly payments or total interest
- • Lower closing costs than cash-out refinancing
- • Ideal when rates have dropped significantly
2Cash-Out Refinance
Refinance for more than you owe and take the difference in cash.
- • Access home equity for investments or improvements
- • Mortgage rates typically lower than other credit
- • Consider tax implications and investment risks
3PMI Removal
Refinance to eliminate private mortgage insurance when you have 20%+ equity.
- • Save $100-300+ monthly on PMI payments
- • May require new appraisal to confirm value
- • Compare costs vs. waiting for automatic removal
Additional Resources
Frequently Asked Questions
When should I refinance my mortgage?
Consider refinancing when you can lower your interest rate by at least 0.5-1%, when you want to change loan terms, remove PMI, or access home equity. The break-even period should align with how long you plan to stay in the home.
How much does refinancing cost?
Refinancing typically costs 2-5% of the loan amount, including appraisal fees ($400-600), origination fees (0.5-1.5% of loan), title insurance, and other closing costs. Some lenders offer no-cost refinancing with slightly higher rates.
What credit score do I need to refinance?
Most lenders require a minimum credit score of 620-640 for conventional refinancing, though you'll get better rates with scores above 740. FHA refinancing may accept scores as low as 580 with sufficient equity.
Can I refinance if I have PMI?
Yes, and refinancing might help you eliminate PMI if your home has appreciated enough to give you 20%+ equity. The new loan-to-value ratio will be calculated based on the current appraised value.
How long does refinancing take?
The refinancing process typically takes 30-45 days from application to closing. This includes application processing, appraisal, underwriting, and final approval. Some lenders offer expedited processes that can close in 15-20 days.
Important Disclaimer
This calculator provides estimates for educational purposes only. Actual loan terms, rates, and costs may vary based on lender requirements, market conditions, and your specific financial situation. Refinancing involves closing costs and may not be suitable for all borrowers. Consider consulting with mortgage professionals and comparing multiple lenders before making refinancing decisions. Past performance and projected returns are not guaranteed.
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