Refinance Calculator
Should you refinance or remortgage? New payment, monthly saving, break-even month and lifetime savings after costs.
How to Use Refinance Calculator
- 1Choose where the mortgage is: US refinance or UK remortgage.
- 2Enter what you still owe, your current rate and the years left.
- 3Enter the new rate, the new term and the closing costs or product and legal fees. In the UK, add any early repayment charge.
- 4Choose whether to pay the costs up front or add them to the new loan.
- 5Read the new payment, the monthly saving, how many months the costs take to pay back, and the lifetime saving.
Frequently Asked Questions
Is it worth refinancing for 1% lower?
Often, if you'll stay long enough. Refinancing $300,000 with 27 years left from 7% to 6% over a new 30-year term cuts the payment from $2,063 to $1,799, saving $265 a month; $6,000 of closing costs are paid back in 23 months. Keeping a 27-year term saves $191 a month and about $56,000 over the loan, against $15,000 with the longer term.
What is the break-even point?
The number of months until the monthly savings add up to the cost of refinancing: costs ÷ monthly saving. If you might move or refinance again before then, refinancing could cost more than it saves.
Why might a lower payment cost more overall?
Because a longer term means more months of interest. Resetting 20 years left to a new 30-year loan can lower the payment even with no rate cut, while adding tens of thousands in interest. The calculator warns you when that happens.
How much could I save by remortgaging off my SVR?
Often a lot. Moving £200,000 with 20 years left from a 7.5% standard variable rate to a 4.5% deal cuts the payment from £1,611 to £1,265, saving £346 a month, so a £999 fee is covered in 3 months. Over the full term that would be about £82,000, though in practice the new rate usually lasts only 2–5 years.
Should I add the fees to the mortgage?
It avoids paying up front, but you'll pay interest on the fees for the whole term. If you can, paying them up front is cheaper overall.
When should I start looking for a remortgage?
In the UK, many lenders let you secure a new deal up to about six months before your current one ends, so you can move straight across without paying the SVR. Check your deal's end date and any early repayment charge before switching sooner.
About Refinance Calculator
This refinance and remortgage calculator shows whether switching mortgage pays. It compares your current loan with a new rate and term, then shows the new payment, the monthly saving, the break-even point after closing costs or fees, and the total you'd save or lose over the life of the loan.
It flags the common trap of a lower payment that costs more overall because the term is longer, and lets you add costs to the loan or pay them up front. UK users can include an early repayment charge; US users, closing costs and points.
Results are estimates: a lender's offer depends on your credit, loan-to-value and fees, and a UK fixed rate normally reverts after a few years, so compare the savings over the deal period too.