Easy To Use Refinance Calculator
- Assume Fixed Costs to Refinance of $500.
- Assume Variable Costs of 1 percent of the amount to be refinanced.
- Assume Your Present Interest Rate is 6%.
- Assume The Refinance Interest Rate is 5%.
- Assume The Amount to Be Refinanced is $350,000.
Calculation & Results…
- So, the cost to refinance will be $500 + (1% of $350,000) = $4,000
- And the annual interest savings will be (.06 – .05) x $350,000 = $3,500
- This is a monthly savings of $3,500 / 12 = $291
- So, the number of months it will take to cover the refinancing costs is $4,000 / $291 = 13.7 months.
A Word About Closing Costs
There is no such thing as a “no cost refinance”. If closing costs are negligible, then they are hidden in your refinance interest rate. If you cannot afford closing costs, we can offer you a “no closing cost refinance”; but it will have a higher interest rate than a refinance with costs paid up front.