Refinance Calculator

Refinancing is transferring your existing loan to a new loan at a lower interest rate. The current loan is closed and a new loan is taken from the same or a different bank. The goal is to reduce the total cost.

If the new interest rate is significantly lower than the current rate, the remaining term is long, and transfer costs (early payoff commission + processing fee) are less than the saved amount, refinancing makes sense.

Early payoff commission to the current bank (1-2% of remaining principal) and processing fee, appraisal fee, etc. to the new bank are the costs. You need to compare the total of these costs with the savings amount.