Refinance Calculator
Thinking about refinancing your mortgage? Use our calculator to see how much you could save each month, how long it takes to break even on the costs, and how much equity you can access.
Your New Monthly Payment
$2,438.36
per month
Is refinancing worth it?
You will recover your refinancing costs in 4 months (0.3 years). Refinancing looks like a strong financial decision.
This calculator provides estimates for informational purposes only and does not constitute financial advice. Actual refinancing costs, penalties, and rates vary by lender. Consult a mortgage professional for personalized guidance.
Disclaimer: The estimates and calculations shown above are for illustrative purposes only and should not be relied upon as financial advice. Actual mortgage rates, terms, and eligibility depend on your personal financial situation, credit history, and current market conditions. Please consult a licensed mortgage broker, financial advisor, or your bank to determine your actual affordability and costs before making any purchasing decisions.
Understanding Mortgage Refinancing
Refinancing can be a smart financial move, but it is important to understand the costs, penalties, and when it makes sense for your situation.
When to Refinance
Refinancing replaces your existing mortgage with a new one. Common reasons include:
- Securing a lower interest rate to reduce monthly payments
- Accessing your home equity for renovations, investments, or other needs
- Consolidating high-interest debt into a single lower-rate payment
- Changing your mortgage terms, such as switching from variable to fixed rate
Breaking Your Mortgage
Ending your mortgage early comes with a prepayment penalty. Understanding how it works is critical:
- Fixed-rate mortgages: penalty is the greater of 3 months' interest or the Interest Rate Differential (IRD)
- Variable-rate mortgages: penalty is typically 3 months' interest
- IRD is based on the difference between your rate and the lender's current rate for a comparable term
- Contact your lender for an exact penalty quote before making a decision
Refinance Costs
Beyond the prepayment penalty, there are additional costs to factor into your refinance decision:
- Legal fees: $1,000 - $2,000 for a real estate lawyer to handle the new mortgage registration
- Appraisal fee: $300 - $500 if your lender requires a current property valuation
- Discharge fee: $200 - $400 charged by your existing lender to remove the old mortgage
- Title insurance: typically included in legal fees but may be an additional $200 - $400
Wondering if refinancing is right for you?
Our team can connect you with trusted mortgage professionals who specialize in refinancing. Get expert advice on your options, penalties, and the best path forward.
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