Refinance Monthly Savings Calculator
Calculate monthly savings from mortgage refinancing and see exactly how much you can save each month with lower interest rates and better loan terms.
Quick Answer
Monthly Savings = Current Payment - New Payment. $1,800 current - $1,450 new = $350 monthly savings. 1% rate reduction typically saves ~$200/month on $300k loan. Essential for refinance decision making.
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Monthly Savings: $285
Total Interest Saved: $75,240
Break-Even: 18 months
Key Features
Monthly Savings
Calculate monthly payment reduction
Interest Savings
See total interest cost reduction
Break-Even Analysis
Calculate when savings exceed costs
Cost Analysis
Include closing costs and fees
How It Works
Enter Current Loan
Input your current mortgage balance and interest rate
Set New Terms
Enter new interest rate and loan term
Add Refinance Costs
Include closing costs and fees
See Savings Analysis
View monthly savings and break-even point
Why Calculate Refinance Savings?
Monthly Relief
Reduce monthly payment burden
Long-Term Savings
Save thousands in interest
Better Terms
Improve loan conditions
When Does Refinancing Make Sense?
Interest Rate Drop of 1% or More
If current rates are at least 1% lower than your mortgage, refinancing typically saves money long-term.
Credit Score Improvement
If your credit score has improved significantly, you may qualify for better rates than when you originally borrowed.
Shorten Loan Term
Refinancing to a shorter term (15-year vs 30-year) builds equity faster, even with similar rates.
Remove PMI
If you've reached 20% equity, refinancing can eliminate private mortgage insurance, saving $100-300 monthly.
Common Refinance Costs
Lender Fees (1-2% of loan)
- • Origination fee
- • Application fee
- • Processing fee
- • Underwriting fee
Third-Party Fees (1-2% of loan)
- • Appraisal fee ($400-600)
- • Title insurance
- • Attorney fees
- • Recording fees
Prepaid Items (0.5-1% of loan)
- • Prepaid interest
- • Property taxes
- • Homeowner's insurance
- • Escrow setup
Points (Optional)
- • 1 point = 1% of loan amount
- • Lowers interest rate further
- • Consider break-even timeline
Calculate Your Refinance Savings
See how much you can save each month by refinancing your mortgage
Use Full CalculatorFrequently Asked Questions
How much should interest rates drop to refinance?
Generally 1% or more. For a $300k loan, a 1% drop saves about $180/month. Consider closing costs and how long you'll stay in the home.
What's a good break-even point for refinancing?
2-3 years is typical. If you plan to stay longer than the break-even point, refinancing makes financial sense.
Should I refinance to a shorter term?
If you can afford higher payments, a 15-year mortgage builds equity faster and saves significant interest, even with similar rates.
Can I refinance with bad credit?
It's possible but more expensive. FHA streamline refinances work with lower credit scores but have higher rates and mortgage insurance.