🏠 Mortgage Refinance Calculator
Analyze mortgage refinancing benefits, calculate break-even points, and determine potential savings. Compare your current mortgage with new loan terms including closing costs and fees.
💰 Monthly Savings
$267
Break-even: 19 months
📊 Refinance Analysis
💰 Cost-Benefit Summary
🎯 Recommendation
📊 Current Mortgage Rates
| Loan Type |
30-Year |
15-Year |
ARM 5/1 |
| 🏦 Conventional |
7.2% |
6.8% |
6.5% |
| 🏛️ FHA |
7.0% |
6.6% |
6.3% |
| 🎖️ VA |
6.9% |
6.5% |
6.2% |
| 💎 Jumbo |
7.3% |
6.9% |
6.6% |
🏠 Understanding Mortgage Refinancing
Mortgage refinancing involves replacing your current mortgage with a new loan, typically to secure better terms, lower interest rates, or access home equity. The decision should be based on financial benefits after considering all costs.
🎯 Reasons to Refinance
| Reason |
Benefit |
Best When |
Considerations |
| 📉 Lower Interest Rate |
Reduce monthly payments |
Rates drop 0.5%+ |
Break-even analysis |
| ⏰ Shorter Term |
Pay off loan faster |
Improved finances |
Higher monthly payments |
| 💰 Cash-Out |
Access home equity |
Home value increased |
Higher loan balance |
| 🔄 Change Loan Type |
Better terms/features |
ARM to fixed rate |
Different requirements |
| ❌ Remove PMI |
Eliminate insurance |
20%+ equity |
Appraisal required |
💰 Refinancing Costs
| Cost Type |
Typical Range |
Description |
Negotiable? |
| 📋 Origination Fee |
0.5% - 1.5% |
Lender processing fee |
Yes |
| 🏠 Appraisal |
$400 - $800 |
Property valuation |
Limited |
| 🔍 Title Insurance |
$500 - $1,500 |
Title search & insurance |
Shop around |
| 📊 Credit Report |
$25 - $100 |
Credit check fee |
Sometimes waived |
| 🏛️ Recording Fees |
$50 - $300 |
Government recording |
No |
| 📋 Attorney Fees |
$500 - $1,500 |
Legal services |
Shop around |
⏰ Break-Even Analysis
| Monthly Savings |
Closing Costs |
Break-Even Time |
Recommendation |
| $100 |
$3,000 |
30 months |
Consider if staying 3+ years |
| $200 |
$4,000 |
20 months |
Good option for most |
| $300 |
$5,000 |
17 months |
Excellent opportunity |
| $400 |
$6,000 |
15 months |
Refinance immediately |
📊 Loan Types Comparison
| Loan Type |
Down Payment |
Credit Score |
Loan Limits |
| 🏦 Conventional |
3% - 20% |
620+ |
Up to $766,550 |
| 🏛️ FHA |
3.5% |
580+ |
Up to $472,030 |
| 🎖️ VA |
0% |
No minimum |
No limit |
| 🌾 USDA |
0% |
640+ |
Varies by area |
| 💎 Jumbo |
10% - 20% |
700+ |
Above conforming limits |
🎯 When NOT to Refinance
| Situation |
Reason |
Alternative |
Exception |
| 📅 Moving Soon |
Won't recoup costs |
Wait until after move |
Significant rate drop |
| 📉 Poor Credit |
Higher rates offered |
Improve credit first |
ARM adjustment coming |
| 💰 High Closing Costs |
Long break-even period |
Shop for better terms |
No-cost refinance |
| 🏠 Underwater Mortgage |
Limited options |
HARP or wait |
Government programs |
| ⏰ Late in Loan Term |
Mostly paying principal |
Continue current loan |
Cash-out needs |
📋 Refinancing Process
| Step |
Timeline |
Requirements |
Tips |
| 1. Shop & Compare |
1-2 weeks |
Rate quotes from multiple lenders |
Get quotes same day |
| 2. Apply |
1-2 days |
Income, asset documentation |
Have documents ready |
| 3. Processing |
2-3 weeks |
Verification, appraisal |
Respond quickly to requests |
| 4. Underwriting |
1-2 weeks |
Final approval |
Avoid major financial changes |
| 5. Closing |
1 day |
Sign documents, pay costs |
Review all documents |
💡 Refinancing Tips
- 🛒 Shop Around: Compare rates from at least 3-5 lenders
- ⏰ Time It Right: Apply when rates are favorable
- 📊 Check Credit: Improve credit score before applying
- 💰 Consider All Costs: Include all fees in break-even analysis
- 🔒 Lock Your Rate: Secure rate during processing
- 📋 Gather Documents: Have financial documents ready
- 🏠 Know Your Home Value: Recent comps help with appraisal
- 💡 Consider No-Cost Options: Higher rate but no upfront costs
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