Loan Refinance Calculator
Loan Balance =
Original Interest/Year =
Fees = 0
Years = 30
New Interest/Year =
Calculates how many months it takes to pay off the cost of refinancing a loan. Money is saved on payments after the break even point.
- Loan Balance: Balance remaining on the current loan.
- Original Interest/Year: Current loan's annual interest rate expressed as a percentage.
- Fees: Cost of financing the new loan (origination fees, etc).
- Years: Number of years for the new loan.
- New Interest/Year: New loan's annual interest rate expressed as a percentage.
- Months: Number of months until breakeven, meaning the new loan is saving money in comparison to the original loan.
The current interest rate on a $350,000 home is 5.875%. Your bank is offering you a new 30-year loan at 4.625%. The cost to refinance is $3,000. How many months to break even on the refinance?
- Loan Balance: $350,000
- Original Interest/Year: 5.875%
- Fees: $3,000
- Years: 30
- New Interest/Year: 4.625%
As long as you will stay in the house for at least 12 months, the refinance is worth it.