Mortgage refinance calculator

How to use this calculator

The conversational refinance calculator guides you through one decision at a time. Instead of completing the full form at once, answer the cards in the conversation and use the left rail to keep track of your progress.

1. 1.Start with your refinance goal. Choose whether you want to lower your payment, lower your rate, pay off the loan faster, access home equity, switch loan type or simply explore.
2. 2.Answer the current-loan questions. Enter the remaining balance, current interest rate and remaining term when the conversation asks for them.
3. 3.Add property and credit details. Provide the property value, ZIP code and credit-score range used to retrieve and compare relevant rate options.
4. 4.Choose the rate source and new term. Review Best on Bankrate, National average or a custom rate, then choose the term you want to test. Open Additional fields to change closing costs, opt into discount points for Best on Bankrate, roll closing costs into the loan or include cash-out. An estimated fallback must remain labeled as estimated when live rate data is unavailable.
5. 5.Calculate with the settled rate. When point pricing, term or cash-out changes, the selected live rate updates before the calculator runs. The result card then uses the matching rate, point count and loan inputs for that scenario.
6. 6.Review the personalized result. The result card summarizes estimated monthly savings, the new principal-and-interest payment, lifetime net savings, break-even time, estimated closing costs and the selected rate.
7. 7.Continue the conversation. Ask a follow-up question to understand the tradeoff or select Compare offers to explore lender options. To test a different scenario, describe the change in the conversation rather than expecting the progress rail to edit a completed answer.

The calculation is an estimate based on the details supplied in the conversation. Confirm the values and compare lender-provided rates and fees before making a decision.

Understanding your results

After the guided questions are complete, the result card compares the current loan details supplied in the conversation with the selected refinance rate and term.

• Monthly savings: The difference between the estimated current and new principal-and-interest payments. A negative value means the selected refinance has a higher estimated monthly payment.
• New monthly payment: The estimated principal-and-interest payment for the proposed loan. It does not include property taxes, homeowners insurance, mortgage insurance or association dues.
• Lifetime savings: The estimated net difference over the modeled life of the loans after the rate, term and estimated upfront costs are considered.
• Break-even point: The estimated time required for positive monthly payment savings to recover the upfront costs. It is not shown when the scenario does not produce monthly payment savings.
• Closing costs: The estimated refinance fees based on the closing-cost percentage in Additional fields. Discount points are calculated separately and included only when they are active for the selected Best on Bankrate quote.
• Discount points: An upfront cost paid to receive the points-inclusive Best on Bankrate rate. One point equals 1% of the refinanced principal. Only available when Best on Bankrate is selected.
• Cash-out: Additional equity added to the new loan balance. It can increase both the offered rate and the payment.
• Selected rate: The Best on Bankrate, National average or custom rate used for this scenario. Best on Bankrate excludes discount points by default and updates only when you choose Yes under Discount points. Estimated fallback rates must remain visibly labeled as estimates.

A lower monthly payment is not the only possible goal. A shorter term can increase the payment while reducing lifetime interest, and a cash-out or loan-type change can create a different tradeoff. Continue the conversation to test or understand another scenario.

How mortgage rates can impact your decision

The rate difference is an important part of a refinance decision, but it is not a complete decision rule. Whether a scenario saves money also depends on the remaining loan term, the new term, closing costs, discount points and how long you expect to keep the loan. Use the calculator's monthly-payment, lifetime-savings and break-even estimates together.

Bankrate's Hidden Homeownership Tax research found that 87% of borrowers in 2025 paid more than the most competitive rate available to them — and 78.7% of refinance borrowers overpaid, too. That overpayment comes down to not shopping enough lenders. The typical borrower who overpaid gave up $3,343 a year (that's $278 a month) over the life of their loan. If you didn't compare at least three lenders when you got your current mortgage, there's a good chance you're one of them, regardless of when you closed.

If the break-even point is shorter than the time you expect to keep the loan, the refinance may be worth exploring. Also compare lifetime cost and whether the new term advances the goal you selected.

Factors that affect your mortgage refinance

You navigated underwriting once to buy this home, so your financial profile has already been tested. If you've kept up with your payments, refinancing mostly comes down to getting lenders to compete for a rate you've already proven you can handle. Loan terms typically depend on:

• Credit score: You’ll need a minimum of 620, but higher is better. Lenders’ highest rates typically go to borrowers with scores above 780.
• Debt-to-income ratio: Generally, lenders want 43% or less of your gross monthly income going toward debt payments, including your mortgage. A higher ratio may still qualify if you have several months of mortgage payments in reserve or other compensating factors a lender can verify.
• Solid payment history: If you’ve made your recent mortgage payments on time, your odds of approval go up.
• Loan-to-value ratio: This compares the amount you owe to your home’s current value. Conventional lenders generally require at least 20% equity for the best rates and to avoid mortgage insurance, but government-backed options like FHA and VA refinances allow you to qualify with less equity.

As with your original mortgage, expect to provide recent pay stubs, tax returns, bank statements and other financial documents.

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