Compare current vs refinanced mortgage with breakeven analysis, total interest savings, and monthly payment reduction charts.
Refinancing changes both the payment and the date the debt ends. This calculator places the remaining schedule of the current mortgage beside a proposed replacement loan, then reports the principal-and-interest payment difference, closing-cost breakeven point, and interest difference over the compared terms. Its charts show how the payment savings develop over time. The common trap is treating a smaller payment as automatic savings: extending the payoff term can reduce the monthly amount while adding years of payments and potentially increasing total interest.
The comparison needs the mortgage's unpaid principal, annual interest rate and remaining term, plus the proposed refinance rate and term. For a fixed-rate mortgage, the balance, monthly rate and number of remaining payments determine each principal-and-interest payment. The calculator compares the existing schedule with the replacement schedule from the refinance date, including their different payoff dates.
Breakeven expresses the entered refinance costs as the time required for monthly payment reductions to recover them. If the proposed payment is not lower, those reductions cannot produce a breakeven. Total interest is a separate comparison between interest remaining on the current mortgage and interest across the proposed mortgage's full term. A longer replacement term can improve cash flow while increasing lifetime interest.
Not by itself. It identifies when accumulated monthly payment reductions recover the entered refinance costs under the comparison's assumptions. Remaining past that point does not guarantee a lower overall cost if the replacement term is longer, costs are financed, or the mortgage is paid off early. Consider the total-interest result and both payoff dates as well.
A refinance can spread the outstanding balance across more remaining payments than the current mortgage has left. Each payment may be smaller even though payments continue for longer. Closing costs added to the new principal can widen that difference. The answer is no: a lower payment alone does not establish that the refinance costs less over its full life.
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