Written by Denny Ceizyk | Edited by Kurt Adams | Updated June 30, 2023
The LendingTree refinance calculator helps you determine if it’s worth it to replace your current loan with a new one. It costs money to refinance a home, and with a few inputs you the refinance calculator shows you if the benefit is worth the cost.
You’ll need to have some information about your current mortgage handy to get the best refinance calculator results. You’ll also need to add information about the new mortgage you’d like to apply for.
Your refinance break-even point is how long it takes to recoup the closing costs you incur on your refinance. For example, if you can save $200 per month by refinancing, but pay $6,000 in costs to get the savings, your break-even point is 30 months ($6,000/$200 = 30 months). If you stay in the home at least 30 months, you’ll save money by refinancing. If not, skip the refinance.
Our refinance calculator will provide two recommendations based on the breakeven point results:
A refinance is a process that involves paying off your current mortgage and replacing it with a new home loan. The most common reason to refinance your mortgage is to lower your interest to reduce your monthly payment.
Learn more about refinance mortgage requirements
A refinance makes the most sense if:
If you just closed on your home at a high interest rate, you’re probably wondering how soon you can refinance your mortgage. If you have a conventional loan, you can refi as soon as it makes financial sense. You’ll need to wait up to a year before you can refinance a government-back loan.
Lender | LendingTree rating and “best of” category | Minimum credit score | Lender review |
---|---|---|---|
Best overall refinance lender | Not disclosed | Read our review | |
Best for variety of refinance products | 580 to 620 | Read our review | |
Best for rate transparency | 620 | Read our review | |
Best online mortgage experience for a traditional bank | Not disclosed | Read our review |
You may be tempted to just ignore the “Length of Ownership” field in your calculations and leave it pre-set to five years. However, before you spend thousands of dollars on closing costs, get your home appraisal and provide all the documentation you typically need to refinance, make sure you’ve given some thought to how much longer you’ll be in the home.
Is it time to get a bigger home to support your growing family? Maybe it’s time to downsize your home now that the kids have flown the coop. Or it could be time to ditch city living for a home in the country. Pondering these questions before you refinance could save you time and money on something that won’t benefit you financially.
Conventional refinance loans. Fannie Mae and Freddie Mac set the guidelines for the most popular loan type: conventional loans. You can avoid mortgage insurance with 20% equity in your home.
FHA refinance loans. Homeowners with scores as low as 500 may qualify to refinance with an FHA loan. However, you’ll pay FHA mortgage insurance regardless of your equity amount.
VA refinance loans. Eligible military borrowers may be able to borrow up to 100% of their home’s value with a VA rate-and-term refinance. VA borrowers can borrow 90% of their home’s worth with a VA cash-out refinance.
USDA refinance loans. Borrowers in rural areas with current USDA loans can lower their payment, but don’t have a cash-out option.
The answer is simple: shop around. LendingTree studies show that consumers who shop for a mortgage save thousands of dollars in interest charges. Mortgage interest rate forecasts change frequently, which means rates may change their pricing strategies daily. Shopping gives you the best chance of catching a special deal or moving on from a lender that’s not competitive.
Some big news about rates in 2023: The Federal Housing Finance Agency (FHFA) announced pricing adjustment changes for a number of factors. Most of the changes go into effect on May 1, and they could have an impact on the conventional mortgage refinance rate you’re offered. To learn more, visit our Mortgage Refinance Rates page.
Unless you’re eligible for a streamline refinance program like the FHA streamline or VA interest rate reduction refinance loan (IRRRL) the following steps best describe how to refinance a mortgage: