Refinance Calculator

The simple fee-recovery point is closing costs divided by positive monthly P&I savings, rounded up to a whole month. It is omitted when the proposed payment is not lower or when recovery would occur in or after the current loan’s modeled payoff month. This shortcut does not compare equity, balances, taxes, investment returns or the timing of financed costs.

Financed costs are added to the proposed principal, so the new payment and interest both rise. The calculator still subtracts the closing-cost amount once in lifetime and five-year net savings: the larger new balance represents repayment of that cost, while the new interest total captures only the added financing charge. It does not subtract the fee twice.

No. A new 30-year term can reduce the payment simply by spreading the balance over more months, even when total interest and closing costs are higher. Compare the payoff dates, five-year interest-and-fee cost, remaining balances and lifetime net savings—not only the payment or simple break-even.

The current balance and actual P&I payment define the remaining loan path. Reconstructing a payment from an original term can be wrong after extra principal, a recast or a modification. Use the P&I amount on the current statement and exclude escrow, taxes, homeowners insurance and mortgage insurance. The model assumes that fixed payment continues until payoff, so the current-loan path is not for an interest-only or contractual balloon structure.

It compares interest in the first 60 modeled payments and adds the full refinance closing costs to the proposed side. It also shows each balance after 60 payments. This is a focused interest-and-fee comparison, not the official Loan Estimate “In 5 years” disclosure, which uses its own prescribed cash-flow fields.

No. Both payments are principal and interest only. The comparison excludes property tax, homeowners insurance, mortgage insurance, escrow adjustments, tax deductions, appraisal differences, prepayment penalties and any delayed or skipped first payment. Add those separately when evaluating an actual offer.

Usually not. CFPB explains that a lender can cover upfront costs by charging a higher interest rate or adding costs to the loan balance. Compare the rate, amount financed, lender credits and total costs on Loan Estimates. Enter any costs added to principal as financed closing costs here rather than treating them as zero.