Mortgage Refinance Savings Calculator
Calculate refinance savings, break-even point, and lifetime interest reduction. Freddie Mac PMMS week of April 30, 2026: 30-yr 6.30%, 15-yr 5.64%.
Current loan
New loan
Typical 2–5% of loan amount.
Share with friends
How to use
- 1 Enter remaining loan balance from your most recent mortgage statement.
- 2 Enter your current APR (from original mortgage docs or current statement).
- 3 Enter the new refinance APR you're being offered. Today's PMMS 6.30% benchmark for 30-year conventional.
- 4 Enter remaining months on your current loan (e.g., 240 if you've paid 10 years on a 30-year).
- 5 Enter total closing costs (typical $5K-$10K — Loan Estimate from lender shows exact amounts). Click Calculate to see total interest saved, monthly savings, break-even month, and net profit.
About Mortgage Refinance Savings Calculator
FAQ
Q When does refinancing make sense?
Generally when (1) rate drops 0.75-1.0%+ from current, (2) you'll stay in the home past break-even (typically 24-40 months), (3) cost savings exceed closing costs over your remaining tenure. Use the calculator to find break-even month.
Q How much are mortgage refinance closing costs?
2-5% of loan amount typically. On a $300,000 refinance: $6,000-$15,000. Major items: lender origination ($1-2K), appraisal ($500), title insurance ($1.5-$2.5K), recording, prepaid interest, escrow setup. Lender's Loan Estimate (LE) shows exact breakdown.
Q What is rate-and-term vs cash-out refinance?
RATE-AND-TERM: lower rate or different term, no equity extracted (same as purchase rates). CASH-OUT: borrow MORE than current balance, extract difference as cash (typically +0.25-0.50% rate premium). Cash-out limits: conventional 80% LTV, FHA 80%, VA 100%.
Q How long does refinancing take?
Typical: 30-45 days from application to closing. Fast track (streamline FHA/VA IRRRL): 15-30 days. Delays from: appraisal scheduling, document gathering, title issues, lender capacity. Lock your rate for 45-60 days minimum.
Q What is a "no-cost" refinance?
Lender pays your closing costs in exchange for a HIGHER interest rate (typically 0.25-0.50% premium). Math: if you're saving 0.5% but paying 0.5% premium for "no cost", you save nothing. Useful only if you're cash-strapped — otherwise pay the closing cost upfront.
Q Can I refinance if I'm underwater?
Possibly. Federal HARP program ended 2018 but Fannie Mae RefiNow and Freddie Mac Refi Possible programs help underwater/low-equity borrowers. Income limits and other criteria apply. FHA streamline doesn't require appraisal — possible if you have FHA loan.
Q What is mortgage recast vs refinance?
RECAST: same loan, you make lump-sum principal payment, lender re-amortizes the remaining balance to lower payment. Cheap ($150-$500) vs $5K-$15K refinance. RATE STAYS SAME. Refinance if rate dropped meaningfully; recast if you have lump sum and rate is good.
Q Should I refinance to a 15-year mortgage?
If rate is 0.5%+ lower AND you can afford the higher monthly payment. 15-year saves massive interest over loan life (often $100K+ on a $300K loan). But payment is ~50% higher than 30-year — make sure you have emergency fund + retirement on track first.
Official resources
CFPB — Refinance Your Mortgage
Consumer Financial Protection Bureau official refinance guide including TILA disclosures.
Freddie Mac — Refinance Programs
Freddie Mac Refi Possible program for income-eligible underwater borrowers.
Fannie Mae — RefiNow Program
Fannie Mae RefiNow refinance program for low-to-moderate income borrowers.
Freddie Mac PMMS — Mortgage Rates
Weekly Freddie Mac mortgage rate benchmark used to evaluate refinance opportunities.