How the refinance comparison is calculated
This page intentionally shows two different views: a simple monthly-payment/fee-recovery comparison and a same-horizon comparison that also accounts for remaining debt.
The first model calculates the current fixed-rate payment from the entered current balance, current rate and months remaining. It then calculates a hypothetical new payment using the current balance plus any financed fees, the new rate and the new term. Simple fee-recovery months divide all entered cash and financed fees by positive monthly payment savings. The second model builds both amortization schedules to the same entered horizon, totals payments made through that horizon, adds the remaining balance, and adds cash-paid refinance fees to the new-loan side.
Current principal + financed feesFinanced fees increase the balance used for the new payment.
Total entered fees ÷ positive monthly payment savingsUseful only as a simple fee-payback view when the new payment is lower.
Payments through horizon + remaining debt (+ cash fees on new loan)Prevents a longer new term from looking better solely because its monthly payment is lower.
Enter the actual current balance, note rate and months remaining.
Model the proposed new rate, new term and both cash-paid and financed fees.
Check simple payment savings, then look at the same-horizon result before drawing a conclusion.
Test several horizons that match how long you realistically expect to keep the new loan.
Best used for
- Comparing a lower payment with the cost of resetting the term
- Estimating a simple fee-recovery period
- Checking a 3-year, 5-year or other same-horizon scenario
What this tool does not answer
- The model is not a legal APR or full net-present-value analysis.
- It does not model taxes, escrow changes, prepayment penalties or opportunity cost.
- A lower payment can still come with a higher balance or longer repayment period.
How to read a sample result
Illustrative example: a $300,000 balance at 6.5% with 300 months remaining has a modeled payment of about $2,025.62. A new 30-year loan at 6% models at about $1,798.65, a payment difference of about $226.97. With $3,000 of fees, simple recovery is about 13.22 months. At a 60-month horizon, the model shows about $393,223.78 for old payments plus remaining debt versus about $390,082.16 for new payments, remaining debt and cash fees.
The methodology below explains how this calculator treats the inputs and assumptions. Replace the sample values with your own planning figures. Results are estimates, not quotes, approvals, disclosures or recommendations.
Inputs and units
Current balance, rate and months remaining; new rate and term; cash-paid and financed fees; comparison horizon. All currency entries are U.S. dollars. Percentage fields take a number such as 6 for six percent, not 0.06. Repayment terms marked in months use whole months; horizons marked in years use whole years.
Calculation workspace
Enter your own figures in the calculator above. The starting values are examples only. No personal identifiers are needed to run a scenario.
How to interpret the result
The first workspace shows the payment change and simple fee recovery. The second compares payments plus remaining debt at the same horizon. It assumes no cash-out, and financed costs enter through the new principal rather than being counted twice.
Assumptions and limitations
The horizon model assumes no cash-out and compares payments plus remaining debt. Simple fee recovery is not a full economic break-even.
Review more than one scenario
Run a base case and then change one uncertain input at a time. Compare a shorter holding period, a higher cost or a different repayment term where those inputs are supported. Record which costs have not been entered. A precise-looking number can still rest on uncertain assumptions.
Invalid inputs and error recovery
If an input is missing or outside the calculator’s supported range, the page will ask you to correct it. Use negative values only in fields that explicitly allow them. A calculation error is not a credit decision.
Model documentation
The calculator methodology explains the inputs, assumptions and supported models. Use the result for planning and compare it with the provider’s written terms and applicable disclosures before making a decision.
Choose a product for your calculation
Use these comparisons for planning; final eligibility, pricing and terms are set by the provider.
Program references and comparison sources
CFPB: Loan Estimate explainer — Comparison of covered mortgage disclosures, cash to close, points, lender credits and monthly costs.
CFPB: Understand the different kinds of loans available — Loan structures, terms and repayment risks; not provider-specific eligibility.
Check the linked source for its effective date and applicable scope. A source link is not a lender partnership or an individual offer.