Refinance Calculator

Refinancing Worksheet

Should you refinance your mortgage?

Whenever interest rates drop, the appeal of refinancing your mortgage grows. But it's important to know the real costs -- and potential savings -- before making a move.

To help, U.S. News has teamed up with HSH Associates, a leading publisher of mortgage and consumer loan information, to offer this easy-to-use, interactive refinancing worksheet. Homeowners can see how their existing mortgage payments might change if they were to refinance, and, just as important, how long it would take to recover any closing costs associated with refinancing.

Instructions. Just fill in the non-colored boxes with the requested information. As you tab or mouse-click through the boxes, your results will appear automatically in the colored boxes. You can change any of your entries, in case you want to try several different scenarios, but you must tab or mouse-click to another box to update your results. To use the worksheet, JavaScript must be enabled on your browser.

Prepaying: if you want to see the effect of prepayments on a mortgage, we recommend you download
The Home Buyer's Calculator for Windows. It's free, courtesy of Wheatworks Software.

This worksheet was created by U.S. News in conjunction with HSH Associates.

Recommended Reading

• 

  Up in ARMs: Should you refinance out of your adjustable-rate mortgage?

  When borrowers ask if they should consider refinancing into an adjustable-rate mortgage, my response is always akin to that old saying, “If the shoe fits, wear it.” While rising rate resets for adjustable-rate mortgages (ARMs) caught many inexperienced homeowners by surprise in the mid-2000s, ARMs remain an excellent, extremely-efficient loan product for the right borrower in the right situation.
• 

  Can health problems prevent you from getting a reverse mortgage?

  Some people may find it difficult to qualify for a traditional mortgage if they have health problems that keep them from holding a steady job. With a reverse home mortgage, there are no income requirements. In fact, many senior citizens choose to borrow with reverse loans to help pay for medical costs. However, your medical condition is a huge consideration in the decision to get a reverse mortgage. Here's why.
• 

  How can the Right to Rent Act help you?

  If you're a homeowner, what would a rent bill have to do with you? It just might make your mortgage more affordable and support your property's value. Here's how.
• 

  How to refinance a VA mortgage with an IRRRL

  If you have a VA home loan, consider yourself lucky. VA mortgages can be refinanced easily, quickly and inexpensively. Here's what you need to know and where you need to go.
• 

  No payments! Buy a home with a reverse mortgage

  You've probably heard that a reverse mortgage can allow you to stay in your family home while generating a regular stream of cash. But what if you want to move? A reverse mortgage can be used to buy a new home too. Here's how.
• 

  HAMP modification vs. private loan mod: Which is better?

  Private or proprietary mortgage modifications are outperforming HAMP modifications by a two-to-one margin. Does that mean they are a better solution?
• 

  Is there a calculator to show the savings from prepaying my mortgage?

  Prepaying your mortgage can be a great way to save a bundle of extra cash over time. Doing so not only saves in interest cost but builds equity faster and also shortens the term of your loan, so you'll own your home free and clear much sooner. HSH's free, downloadable Homebuyer's Calculator Suite allows for regular or irregular prepayments of principal, and will show you the effect your extra effort will have on your total loan costs and term.
• 

  Is there a website which tracks Federal mortgage regulations?

  Federal regulations are of course all posted in the Federal Register. The Federal Reserve is generally in charge of them, but mortgage regulations are presently enforced by a hodgepodge of agencies (FRB, OCC, OTS, FTC, FDIC, FFIEC and others, depending upon the regulation in question). There are any number of mortgage compliance firms which keep track of these things for professionals, but a good place to start would be the Federal Reserve (www.FederalReserve.gov) If you have a specific regulation in mind (Home Mortgage Disclosure Act, Truth in Lending, Home Owners Equity Protection Act, Community Reinvestment Act, etc) it would be good to use those specific regulations in any search you conduct).
• 

  Buying out partners with a cash-out refinance

  I inherited my fathers house with 2 brothers, I want to buy out brothers - they are asking $80k total, there is no mrtg on house (owned out right). I have high debt $11k consolidated loan, $15k car loan and $20k on credit card - minimum pymnts total $1,400 mnth.  I want to ask for a $100k loan, $80k to pay brothers and $20k to pay cr card - I earn $45k yrly, would a cash out refinance be my best option?Assuming the home value is $120,000, your $100,000 loan ($80,000 for your brothers plus $20,000 in credit card debt would leave you with less than a 20% equity stake in the property, making a cash-out refinance difficult (most lenders will want to see you have at least a 25% remaining stake after the refinance).Most lenders will qualify you today with not more than a 31% "housing debt" ratio and not more than a 41% total debt ("back end" ratio). Using those percentages, your present income would support a maximum $1,538 per month in debt. Of that, your mortgage would be allowed to take up a maximum $1,162.A $100,000 mortgage @ 4.5% creates a principal and interest payment of $507 per month, leaving you about $1031 per month for taxes, insurance and any other debts which have longer than ten months to complete (your consolidated and auto loans plus any credit card debt would be considered here). If the total of these bumps you up against your $1538 cap, the amount you can use for your mortgage is reduced, meaning you won't be allowed to borrow the $100,000 you want, but something less than that instead.
• 

  Should I use my construction lender for my permanent financing?

  "I am about to complete the finishing touches on a major remodel to my house. For this remodel I have the property on a construction loan. Can I shop around for my permanent financing or is it better to go with the bank that provided the construction loan?" While considering the lender who funded your construction loan, you should of course shop around. The lender with your existing loan may provide the advantage of already having (almost) all your paperwork on file, and so may be able to offer you a faster, easier permanent financing process. However, you'll want to know if the rates and terms you are being offered are in line with the rest of the market.