Calculate potential savings from refinancing your mortgage in the US. Compare your current loan with new refinance options to determine if refinancing makes financial sense.
When to Consider Refinancing Your Mortgage
Refinancing can save money in several scenarios:
- Lower Interest Rates: Rates have dropped 0.5-1% or more since your original loan
- Better Credit Score: Your credit has improved, qualifying you for better terms
- Loan Term Changes: Switch from 30-year to 15-year to pay off faster
- Cash-Out Needs: Access home equity for renovations, debt consolidation, or investments
Types of Mortgage Refinancing
Rate-and-Term: Change interest rate and/or loan term without taking cash out.
Cash-Out: Borrow more than you owe and take the difference in cash.
Streamline: Simplified process for FHA, VA, or USDA loan holders.
Refinancing Costs to Consider
Typical refinancing costs range from 2-5% of loan amount:
- Origination fees (0.5-1.5% of loan amount)
- Appraisal ($400-800 depending on home value and location)
- Title insurance and escrow fees ($800-1,500)
- Credit report, processing, and underwriting fees ($300-800)
- Attorney or settlement fees ($500-1,000 in some states)
- Recording fees, transfer taxes, and other local costs