How it works
Refinancing swaps your existing loan for a new one at a lower rate to cut your interest burden. This calculator estimates savings on a simple-interest basis so you can gauge whether refinancing is actually worth it. Be sure to include prepayment fees and origination costs to see the true net benefit.
FAQ
Q. When is refinancing worth it?
A. Generally when the rate gap is 0.5 points or more and enough term remains to offset the switching costs.
Q. Is this an exact total-interest calculation?
A. No — it's a simplified estimate that doesn't account for the declining balance. Confirm exact figures with your bank.