Refinance Calculator

- May 10, 2025

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Compare your current mortgage with refinancing options to see potential savings and the break-even point. This calculator helps you make an informed decision about whether refinancing makes financial sense for your situation.

Current Mortgage

Current Balance:

Current Interest Rate (%):

Current Term (years):

Current Monthly Payment:

Time Remaining (years):

Payment Type:

New Mortgage Options

New Interest Rate (%):

New Term (years):

Closing Costs:

Payment Type:

Include cash out

Advanced Options

Marginal Tax Rate (%):

Annual Appreciation (%):

Refinance Analysis Results

Monthly Savings

£0.00

Break-Even Time

0 months

0 years

Lifetime Savings

£0.00

Interest Savings

£0.00

Mortgage Comparison

	Current Mortgage	Refinanced Mortgage	Difference
Loan Amount	£0.00	£0.00	£0.00
Interest Rate	0.00%	0.00%	0.00%
Term	0 years	0 years	0 years
Monthly Payment	£0.00	£0.00	£0.00
Total Payments	£0.00	£0.00	£0.00
Total Interest	£0.00	£0.00	£0.00

Cumulative Savings Over Time

Refinance Analysis

About Mortgage Refinancing

Refinancing your mortgage involves replacing your current loan with a new one, often with different terms. The main reasons to refinance include securing a lower interest rate, changing the loan term, or accessing home equity.

Key Considerations

Interest Rate: Lower rates can reduce your monthly payment and total interest paid.
Break-Even Point: How long it takes for your savings to exceed the closing costs.
Loan Term: A shorter term means higher monthly payments but less total interest.
Closing Costs: Fees associated with refinancing, typically 2-5% of the loan amount.
Cash-Out Option: Borrowing more than you owe to access equity for other purposes.

When To Consider Refinancing

When interest rates have dropped at least 0.5-1% below your current rate
When you want to switch from an adjustable-rate to a fixed-rate mortgage
When you need to lower your monthly payments by extending the term
When you want to pay off your mortgage faster by shortening the term
When you need to access home equity for major expenses or debt consolidation

Disclaimer

This calculator provides estimates based on the information you provide. Actual loan terms, interest rates, and fees may vary. Consult with mortgage professionals for personalised advice based on your specific situation.

Understanding the Refinance Calculator

The refinance calculator is a helpful tool that allows homeowners to evaluate their current mortgage against new refinancing options. With this calculator, users can compare potential savings and determine the break-even point of refinancing their loan. It’s designed to help you make sound Financial decisions tailored to your situation.

Entering Your Current Mortgage Details

To get started with the refinance calculator, you'll need to input your current mortgage details. This includes your current balance, interest rate, term, and monthly payment. You’ll also need to indicate how many years remain on your mortgage. Providing accurate figures ensures that the calculator gives you reliable results that can guide you in your refinancing journey.

Exploring New Mortgage Options

Next, you can enter details about new mortgage options you’re considering. This includes the new interest rate and the term for the new loan. You’ll also need to account for any closing costs associated with refinancing. By comparing these figures, you can see how much you might save by switching to a new mortgage.

Benefits of Using the Refinance Calculator

Using this refinance calculator offers several benefits, such as:

Determining monthly savings on your mortgage.
Calculating the break-even point for your refinancing.
Understanding the total interest savings over the life of the new loan.
Comparing various mortgage options easily.

These advantages make it easier to see if refinancing is the right choice for you.

Advanced Options for Detailed Insights

The refinance calculator also includes advanced options like entering your marginal tax rate and annual appreciation. These features help you get a more nuanced view of how refinancing could affect your overall financial picture. By factoring in these elements, you can make more informed and strategic decisions regarding your mortgage.

Knowing When to Refinance

It’s wise to consider refinancing under certain conditions. Here are some triggers that might prompt you to look into refinancing:

If interest rates drop significantly below your current rate.
If you want to switch from an adjustable-rate mortgage to a fixed-rate mortgage.
If you’re looking to reduce your monthly payments.
If you wish to pay off your mortgage more quickly.

Recognising these situations can help you take action when refinancing makes the most sense.

The Importance of Closing Costs

When refinancing, don’t forget about closing costs. These fees can range from 2% to 5% of your new loan amount. It’s important to factor these costs into your calculations. Understanding how closing costs affect your potential savings can give you a clearer picture of whether refinancing is financially beneficial.

Final Thoughts on Refinancing

In summary, the refinance calculator is an excellent resource for anyone considering refinancing their mortgage. It helps you understand potential savings, assess new loan options, and navigate the complex world of mortgages. By using this tool, you can enter your details with confidence and get a clearer view of your financial future. Always remember to consult mortgage professionals to ensure you make the best decision for your situation.

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