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Figure Out “If You Refinance …”

To 1) cut your payment, 2) pay it off faster, 3) get cash, or 4) switch to a fixed or adjustable rate loan.

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[{"id":"1","mort_type":"30_fixed","pretty_name":"30-Year Fixed","interest_rate":"0.0435","length":"30"},{"id":"2","mort_type":"20_fixed","pretty_name":"20-Year Fixed","interest_rate":"0.0413","length":"20"},{"id":"3","mort_type":"15_fixed","pretty_name":"15-Year Fixed","interest_rate":"0.0393","length":"15"},{"id":"4","mort_type":"10_fixed","pretty_name":"10-Year Fixed","interest_rate":"0.038","length":"10"},{"id":"5","mort_type":"71_arm","pretty_name":"7-1 Adjustable","interest_rate":"0.0375","length":"30"},{"id":"6","mort_type":"71_arm_adjusted","pretty_name":"After 7 years","interest_rate":"0.0525","length":"30"},{"id":"7","mort_type":"51_arm","pretty_name":"5-1 Adjustable","interest_rate":"0.0325","length":"30"},{"id":"8","mort_type":"51_arm_adjusted","pretty_name":"After 5 years","interest_rate":"0.0475","length":"30"}]

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What's your Monthly Payment?

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$
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Advanced Options

Our Estimates Assume That You …

  • … pay $ in closing costs
  • mortgage interest from your tax return
  • … And your marginal tax bracket is

Current Mortgage vs. Refinanced Mortgage

Mortgage TypeInterest RatePayments / Mo.After Tax
Principal and interest payment not including taxes or insurance. Focus on the after-tax cost of your mortgage if you deduct mortgage interest on your tax return. See Explanations.
If You Refinance with this Loan:
  • Your initial monthly payment would be about the same amount as you currently pay. $xxx after taxes.

  • We estimate closing costs of $xxx, which the savings would cover in about 3 years.Change

  • After the xx years you intend to hold the mortgage, the amount you owe would be about the same $xxx,xxx more in today's dollars — $xxx,xxx vs. $xxx,xxx.

What If You Want To ...

Lower Your Monthly Payment?

This isn't a good option, because you'll pay about the same amount as you currently pay $xxx more after taxes each month.

Pay Off Your Mortgage Faster?

This is a good option, because you'll owe about the same amount $xxx,xxx more at the end of the 10 years you intend to hold the mortgage.

Cash Out or Consolidate Debt?

You could take out a maximum of $xxx,xxx in cash You can't take out any cash by refinancing this mortgage i Here's why: The mortgage on a "cash-out" refinance is usually limited to 75% of your current home value. If your house is worth $xxx,xxx, the limit is $xx,xxx. If closing costs are $1,500, the most you could get is $xx,xxx. .

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Click to learn more about the assumptions and equations used on this page
Explanations

Closing costs and points, if any, are added to the refinanced mortgage. Use the advanced menu to see the values we use (and adjust them).

If your current mortgage is an Adjustable Rate Mortgage (ARM), to estimate the amount remaining on your current loan at the end of the period you intend to hold the refinanced loan: 1. As future reset rates for Adjustable Rate Mortgages (ARMs) are unknown, we use an estimated 6.75% interest rate, based on an estimated 3.75% index rate plus a 3% margin; and 2. If your current interest rate is within 1% of that estimate rate we assume you are in the first year of paying the reset rate, otherwise we assume you are within one year of paying the reset rate.

Mortgage interest is tax deductible, and the after-tax payment shown is your initial after-tax payment, based on the tax rate in Advanced. The interest you pay and your tax deduction decline as you pay down the loan, so your after-tax payment in dollarswill rise. But due to inflation, your after-tax expense in today's dollars will generally decline.

Note that it becomes increasingly difficult to get a mortgage as the payment before taxes, plus real estate taxes and insurance, rise above 30% of your household income.