Mortgage Refinance Calculator
Calculate if refinancing your mortgage will save you money. Compare monthly payments, total interest, and break-even timeline. Free mortgage refinance calculator with instant results.
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CalcLeap Editorial Team
Reviewed by certified professionals · Last updated April 1, 2026
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📐 How We Calculate This
We use the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n – 1], where P is the principal, r is the monthly interest rate, and n is the total number of payments. Property taxes and insurance are estimated based on national and state-level averages from the U.S. Census Bureau.
Interest rates shown reflect current market ranges from Freddie Mac's Primary Mortgage Market Survey. Actual rates depend on credit score, down payment, loan type, and lender.
📚 Sources & References
Frequently Asked Questions
When does it make sense to refinance my mortgage?
Refinancing typically makes sense when you can lower your interest rate by at least 0.5–1%, plan to stay in the home long enough to recoup closing costs (past the break-even point), or need to switch from an adjustable-rate to a fixed-rate mortgage. Use the break-even month result above to see how long it will take to recover your closing costs.
What are typical closing costs for a refinance?
Closing costs usually range from 2–5% of the loan amount and include appraisal fees, title insurance, origination fees, and recording fees. On a $250,000 loan, expect $5,000–$12,500. Some lenders offer "no-closing-cost" refinances, but they usually charge a higher interest rate to compensate.
Should I refinance to a shorter or longer term?
A shorter term (e.g., 15 years) means higher monthly payments but significantly less total interest paid. A longer term (e.g., 30 years) lowers monthly payments but costs more over the life of the loan. Choose based on your monthly budget and financial goals.
What credit score do I need to refinance?
Most conventional lenders require a minimum credit score of 620, though you'll get the best rates with a score of 740 or higher. FHA streamline refinances may accept scores as low as 580. Higher scores typically qualify for lower interest rates, which means more savings.
How long does the refinancing process take?
The refinancing process typically takes 30–45 days from application to closing, though it can take longer during busy periods. Steps include application, appraisal, underwriting, and closing. Having your financial documents organized can speed up the process.