Mortgage Refinance Calculator

Refinancing a mortgage can help lower monthly payments, reduce total interest costs, or shorten your loan term. Our Advanced Mortgage Refinance Calculator provides a clear side-by-side comparison of your current loan versus refinancing options at 15-year and 30-year terms using real-time OBMMI rates. Unlike other tools, our calculator amortizes your current loan to today’s date to determine your actual remaining balance and remaining term, giving you a realistic estimate of your refinance potential.

Mortgage Refinance Calculator
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Step-by-Step Guide

  1. Enter Original Loan Details
    • Original Loan Amount – The amount you originally borrowed.
    • Original Interest Rate – The rate you locked in at loan origination.
    • Loan Term – Number of years for the original mortgage.
    • First Payment Date – Used to calculate how much principal has been paid to date.
  2. Adjust Your Refinance Preferences
    • Choose a Refinancing Option: Compare a 15-year or 30-year refinance.
    • Interest Rate: Defaults to real-time OBMMI refinance rates, but can be adjusted.
    • Additional Monthly Payments (Optional): See how extra payments affect your total savings and loan term.

After entering this information, the calculator will display: Remaining Balance & Term (Based on amortization to today’s date), Comparison of Monthly Principal & Interest Across Loan Options, Total Interest Paid Over 5, 10, 15, 20 Years and Full Term, Impact of Extra Monthly Payments on Interest Savings & Payoff Date, Break-even Analysis on Refinance Savings


Refinance Comparison Breakdown (What’s Calculated?)

  • Remaining Balance & Term – Amortized from original loan details to today’s date.
  • Monthly Principal & Interest Comparison
    • Current Loan vs. 15-Year vs. 30-Year Refinance
  • Total Interest Paid Over Different Timeframes
    • Interest costs compared across 5, 10, 15, 20 years and full term.
  • Effect of Extra Monthly Payments
    • Interest savings across all timeframes.
    • Reduced remaining loan term.
  • Break-even Point Calculation
    • Shows when refinance savings outweigh upfront costs.

For a detailed breakdown of your loan payments over time, check out our Amortization Calculator.


Understanding the Mortgage Refinance Formula

Our calculator applies a precise mathematical formula to provide accurate estimates:

M = P × r ( 1 + r n ) ( 1 + r n ) - 1

Where:

  • M = Monthly mortgage payment
  • P = Remaining loan balance (or new refinance balance)
  • r = Monthly interest rate (Annual Rate / 12)
  • n = Total number of payments (Loan Term × 12 months)

The calculator also accounts for:

  • Amortization to current date to get an accurate remaining balance.
  • Additional monthly payments to show savings on interest & term length.
  • Break-even analysis to determine when refinancing makes financial sense.

Why This Calculator Stands Out

Unlike other refinance calculators, ours:

  • Uses real-time OBMMI rates for accurate refinance estimates.
  • Amortizes your current loan to determine the true remaining balance & term.
  • Automatically compares 15-year & 30-year refinance options side by side.
  • Allows for extra monthly payments, showing how much you can save in interest.
  • Break-even analysis helps determine if refinancing is worth it.

Understanding When Refinancing Makes Sense


What to Do Next?

Refine Your Loan Options: Explore Loan Compass for a detailed loan analysis.
Learn More: Check our Knowledge Hub articles to understand refinancing strategies.


Final Thoughts

Our Advanced Mortgage Refinance Calculator gives you a clear comparison of your refinance options, factoring in real-time interest rates, amortization schedules, break-even points, and potential savings. Designed for homeowners evaluating refinancing, this tool ensures clarity and accuracy when making mortgage decisions.

Start Exploring Your Refinance Options Today!