Mortgage Refinance Savings - Example
In this example, we look at the financial impact of refinancing into a new mortgage with a substantially lower interest rate and shorter term. We assume the current mortgage has been paid for 5 years and has 25 years of payments remaining. The new mortgage is due in 15 years and has a 3% lower interest rate. We have also assumed that the house will be sold in 5 years and that the refinance costs $2,000 plus 1 point. 1 point is equivalent to 1% of the new loan amount. Finally, we've made standard assumptions for the rest of the parameters.
Click on the Start Refinance Analysis button to see the analysis of this mortgage refinance or enter your own information or explore the other examples.
No Cash-Out Examples: Attractive Refinance Borderline Refinance Unattractive Refinance
