Mortgage Loan Refinance Analysis Calculator

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This calculator computes how long it takes to recover the closing costs incurred when refinancing a mortgage, as well as the estimated savings from refinancing (including the difference in total interest to be paid on the new loan compared to the interest remaining to be paid on the existing loan).


How much interest can be saved by refinancing a home loan?

Field Input
Year                                          2018
Month September

Current loan field Input
Month loan originated February
Year loan originated 2001
Original loan amount $250,000
Term of loan 30 years
Interest rate 6.50%
Federal and state tax rate 35%
Is interest deductible?               Yes

New loan field Input
Are closing costs added to loan?   No
Term of loan 15
Interest rate 4.125%
Other closing costs $4,000

In this example, the net savings from refinancing is $19,569.00. In addition, the difference in monthly payment is reduced $254 and the Number of months to recover closing costs equals 16.

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