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Calculating Your Refinance


Refinancing might be appealing with today's low mortgage rates, but weigh the costs and benefits carefully before you apply.

HSH.com's refinance calculator lets you compare your current monthly mortgage payment with that of a new home loan and helps you see how long it would take for the refinance to pay for itself.

Refinance Calculator: Compare Current and New Mortgages

To get started, enter information about your current mortgage, including the month and year in which it began, the loan's original amount, the term, and the interest rate in the section at the top of the refinance calculator.

The calculator automatically fills in the remaining amount of your mortgage in the next section. Fill in the term, interest rate, and estimated closing costs--including any points paid upfront--for the new mortgage.

Interpreting Results

Now check the results to compare your current mortgage payment to the new monthly payment. You'll also see how long it will take to recover the costs on the new mortgage--a key factor in deciding whether to refinance. If you plan to move before you would break even with a mortgage refinance, then stick with your current loan.

Another important consideration is how much you'll save in interest on the refinance over the course of the loan. The refinance calculator's mortgage analysis section tells you the number of payments you've made so far, the number of remaining payments at the time you refinance, total interest paid as of the refinance date, and total unpaid interest as of the refinance date for both your current loan and the new loan you're considering.

Amortization and Prepayment Calculators Help, Too

In addition to the refinance calculator, you'll find it helpful to view a full amortization table for the new mortgage with HSH Associates' amortization calculator. If you'd like to pay off your new mortgage sooner but are hesitant to commit to a shorter term, such as 15 instead of 30 years, you may consider staying with a 30-year mortgage loan but making higher monthly payments whenever possible as if you had a 15-year term. Use HSH.com's prepayment calculator to see how prepaying principal affects the term and saves money over the long run.

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