Easy To Use Refinance Calculator

Assumptions…

  •  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.

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