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Mortgage Refinance Calculator

The Refinance Calculator will help you determine whether refinancing your loan for a lower interest rate is a wise decision for you. While a lower interest rate will mean lower monthly payments and less total interest, refinancing will also mean paying closing costs and, in some cases, points. If the monthly savings exceed these closing costs, refinancing is a good option.*

  • Enter ballpark values by dragging the sliders left or right.
  • Enter exact numbers by clicking in the box and type your number (no commas). The results of your calculations show in the box near the bottom of the calculator.


Current Loan Information
Loan Amount
This is the amount of your current loan.
Loan Rate
This is the interest rate of your current loan.
Loan Term
The loan term is the maximum time in years in which you agreed to pay back the loan in full.
Months Paid
Months paid is the number of months that you have made payments on your current loan, thus far.
Current Balance
This is the estimated balance of your current loan, principal and interest only (no tax or insurance fees included).
Monthly payment
This is the estimated monthly amount you have to pay for principal and interest only on you current loan.
Outstanding Interest
The is the estimated amount of interest you still have to pay on your current loan if you continue to pay to the end of your loan term.
New Loan Information
Loan Rate
This is the interest rate of your new loan.
Loan Term
The loan term is the maximum in years in which you agreed to pay back the new loan in full.
Points are prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount (e.g., two points on a $100,000 mortgage would cost $2,000)
Other Costs
Other costs are also known as closing costs. Closing costs are expenses incurred by buyers and sellers in transferring ownership of a property. These may include an origination fee, taxes, the costs of obtaining title insurance, transfer fees, etc. They can often total several thousands of dollars. You may need to consult a loan officer for an estimate.
Savings Rate
Most borrowers choose to roll closing costs and points into the loan balance; however, if you choose to pay those costs out-of-pocket, you should enter your savings interest rate. You can then determine how much interest you will lose by taking that money out of your savings.
Monthly payment
In the monthly payment results, compare your monthly payment amounts between your current loan and your proposed, new loan.
Outstanding Interest
Compare the total interest you will pay over the life of the loans.
The results box offers guidance and suggests how to interpret the graph.
Mouse over the graph and move to a speicific year. The dynamic read-out shows your cumulative cost savings up to that year. The break-even point is where the current loan and the new loan lines intersect. You need to keep your existing loan until the break-even point in order for the refinancing to be a wise decision. In other words, at that time, the closing costs are equal to your cumulative monthly savings. For instance, if you intend to stay in the home for at least 2 years, and the break-even point is less than 2 years, then refinancing will save you money. If you plan to stay in the home for a maximum of 2 years and the break-even point is more than 2 years, then you will lose money with a refinancing.

*Calculators provided are estimation tools and do not necessarily reflect products, terms or rates that Home Federal Bank may offer. Please contact your Home Federal banker to verify results.

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