Refinance Calculator
Monthly Savings: $348
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| Current Mortgage | New Mortgage | Difference | |
| Monthly Payment | $1,847 | $1,499 | -$348 |
| Interest Rate | 7.50% | 6.00% | -1.50% |
| Loan Term | 25 years | 30 years | +5 years |
| Principal Balance | $250,000 | $250,000 | $0 |
| Total Interest | $304,175 | $289,640 | -$14,535 |
| Refinancing Costs | Amount | Description | Total |
| Closing Costs | $5,000 | Lender fees | $5,000 |
| Points | $0 | 0.00% | $0 |
| Prepaid Interest | $500 | Per diem | $500 |
| Other Costs | $1,000 | Misc fees | $1,000 |
| Total Refinance Cost | $6,500 | - | $6,500 |
| Break-even Point | 18.7 months | ||
| Net Savings (7 years) | $22,736 | ||
Refinance Analysis
Break-even Analysis
| Year | Monthly Savings | Cumulative Savings | Net Benefit |
|---|---|---|---|
| 1 | $348 | $4,176 | -$2,324 |
| 1.6 | $348 | $6,500 | $0 |
| 3 | $348 | $12,528 | $6,028 |
| 5 | $348 | $20,880 | $14,380 |
| 7 | $348 | $29,232 | $22,732 |
| 10 | $348 | $41,760 | $35,260 |
Refinance Scenarios
| Scenario | New Rate | Monthly Savings | Break-even |
|---|---|---|---|
| Conservative | 6.50% | $184 | 35.3 months |
| Current | 6.00% | $348 | 18.7 months |
| Optimistic | 5.50% | $512 | 12.7 months |
| Cash-out ($25K) | 6.25% | $198 | 32.8 months |
Recommendation
✓ Refinancing is Recommended
You'll save $348 per month and break even in just 18.7 months. Over 7 years, you'll save $22,732 even after paying $6,500 in closing costs.
You'll save $348 per month and break even in just 18.7 months. Over 7 years, you'll save $22,732 even after paying $6,500 in closing costs.
Note: This analysis assumes you'll stay in the home for at least 7 years. If you plan to move sooner, consider the break-even point carefully. Rates and closing costs may vary by lender.