Mortgage refinance calculator
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How to use this calculator
This calculator now runs on live rate data and a fuller picture of your loan, so the results are closer to what a lender would actually offer you. Have your mortgage statement handy, then enter:
Remaining loan balance: What you still owe on your current mortgage.
Remaining loan term: How many years and months are left on your current loan. This matters because refinancing into a new 30-year term resets your payoff clock, even if your rate drops.
Property value: What your home is worth today, not what you paid for it. If you don't have a recent appraisal, check your county assessor's site, look at what comparable homes nearby have sold for in the last three to six months or use a home value estimator as a starting point. This number drives your loan-to-value ratio, which lenders use to set your rate, so a rough guess here means a rough result.
ZIP code: This lets the calculator pull local property tax and insurance estimates instead of national averages, which can shift your total monthly payment by hundreds of dollars depending on where you live.
Credit score range: Select the band your score falls in. Your credit score is one of the biggest levers on your rate, so an honest answer here matters more than almost any other input.
Current interest rate: The rate on your existing mortgage, down to three decimal places if you have it.
New interest rate: Pick one of three ways to estimate this:
- Best rate on Bankrate: The most competitive live rate available today for your profile.
- National average: Today's average 30-year refinance rate, currently 6.77% as of July 10, 2026.
- Enter your own: Use this if you already have a quote from a lender.
Comparing the first two tiles is worth doing on its own. Bankrate's Hidden Homeownership Tax research found that 87% of borrowers in 2025 paid above the most competitive rate available to them, at an average cost of $3,343 a year. Running both tiles shows you exactly what that gap is worth on your own loan.
New loan term: Choose 30, 20, 15 or 10 years. A shorter term means a higher monthly payment but far less interest paid over the life of the loan. A longer term lowers your payment but stretches out how long you're in debt.
Understanding your results
Once you’ve plugged all the numbers into the calculator, you can use the key outputs to determine whether a refinance makes sense. Here’s how to interpret your results:
- Monthly savings: How much less you'd pay each month compared to your current loan.
- New monthly payment: Your full estimated payment under the new loan.
- Savings this year: What refinancing puts back in your pocket over the next 12 months.
- Lifetime savings: Your total savings over the full life of the new loan, accounting for the rate difference and any change in term.
- Closing costs: Your estimated upfront cost to refinance, including any discount points. A discount point costs 1% of your loan amount upfront and typically lowers your rate by about a quarter of a percentage point. Overall, closing costs typically run 2% to 5% of your loan amount.
- Break-even point: This is the number of years it takes for your monthly savings to cover your closing costs. If you plan to stay in the home longer than it takes to reach your break-even point, refinancing pays off. If you plan to move or refinance again before then, it likely won't.
If your new monthly payment comes out higher than your current one, you won't see a break-even point based on payment savings alone. In that case, the refinance would need to be justified by something other than a lower monthly bill, like paying off your home faster or accessing equity.
- Payoff chart: This shows how your current and refinanced loans pay down over time, including the year each is paid off. Watch this closely if you're refinancing into a longer term than you have left. A lower monthly payment can still mean paying off your home years later than you otherwise would. If you choose a term shorter than your remaining balance, you could come out ahead on both fronts: paying less per month and paying off the home sooner.
How mortgage rates can impact your decision
Mortgage rates are central to determining whether a refinance will save you money. The industry standard is simple: If you can drop your rate by just 0.75 percentage points, the monthly relief offsets standard closing costs.
Bankrate's Hidden Homeownership Tax research found that 87% of borrowers in 2025 paid more than the most competitive rate available to them — and 78.7% of refinance borrowers overpaid, too. That overpayment comes down to not shopping enough lenders. The typical borrower who overpaid gave up $3,343 a year (that’s $278 a month) over the life of their loan. If you didn't compare at least three lenders when you got your current mortgage, there's a good chance you're one of them, regardless of when you closed.
No matter when you took out your mortgage, if your break-even point is shorter than how long you plan to stay in the home, refinancing is worth pursuing.
Review current mortgage refinance rates, compare lenders and see what you qualify for.
Learn moreWhat is mortgage refinancing?
Mortgage refinancing means you replace your current home loan with a new one. The borrowed funds from your new mortgage pay off your existing loan. Most people refinance to lock in a lower interest rate or to shorten the mortgage term.
A cash-out refinance lets you borrow additional cash against your equity, but it also means owing more on your home and resetting your interest clock on a larger balance. If you're covering a one-time cost like debt consolidation or a major repair, compare a cash-out refinance against a home equity loan or HELOC first. Either one can get you cash without touching your primary mortgage rate.
Factors that affect your mortgage refinance
You navigated underwriting once to buy this home, so your financial profile has already been tested. If you've kept up with your payments, refinancing mostly comes down to getting lenders to compete for a rate you've already proven you can handle. Loan terms typically depend on:
- Credit score: You’ll need a minimum of 620, but higher is better. Lenders’ highest rates typically go to borrowers with scores above 780.
- Debt-to-income ratio: Generally, lenders want 43% or less of your gross monthly income going toward debt payments, including your mortgage. A higher ratio may still qualify if you have several months of mortgage payments in reserve or other compensating factors a lender can verify.
- Solid payment history: If you've made your recent mortgage payments on time, your odds of approval go up.
- Loan-to-value ratio: This compares the amount you owe to your home's current value. Conventional lenders generally require at least 20% equity for the best rates and to avoid mortgage insurance, but government-backed options like FHA and VA refinances allow you to qualify with less equity.
As with your original mortgage, expect to provide recent pay stubs, tax returns, bank statements and other financial documents.
What to consider next
Is now the right time to refinance your mortgage? If your break-even point is under 3 years and you plan to stay in the home that long, refinancing at today's rates is worth pursuing now. If your break-even point is longer than you plan to stay, hold off and keep tracking rates. Either way, get quotes from at least three lenders before you decide — that single step is where most borrowers in Bankrate's Hidden Homeownership Tax research left money on the table.
When you narrow it down to a few lenders, apply for preapproval. Each will send you a loan estimate breaking down your new loan's rate and fees. Use those estimates to compare lenders side by side to see which one actually gets you the best deal.