Should you refinance? Let’s find out.
Put in your current mortgage and the new rate you’re looking at. We’ll find your real savings, your break-even point, and how much sooner you could be mortgage free.
Mike Fox, Mortgage Agent, Level 2 — BRX Mortgage FSRA #13463
Starting figures are examples, marked Example beside each field. Replace them with your own for a result about you.
The new rate, on the same balance and amortization: lower by $259 a month.
Net benefit is the interest saved on the same balance, less the cost of switching. It never counts borrowed money.
Current mortgage
What you owe today.
Loan to value: 80.0%
Assumed: interest compounds twice a year, the usual for a fixed rate. Your lender's terms decide, so change it if they say otherwise.
Used for the penalty and to compare both mortgages over the same period.
We work this out for you. Edit it if your real payment is different.
New mortgage
The rate and terms you are comparing to.
Assumed: interest compounds twice a year, the usual for a fixed rate. Your lender's terms decide, so change it if they say otherwise.
Both mortgages are compared over the longer of this term and the months left on the current one.
Borrowed money: shown on its own, never counted as a benefit.
New balance: $480,000 · Loan to value: 80.0%
Prepayment penalty
The cost to break your current mortgage.
Best when your lender quoted a payout figure for a date. A figure worked out from the commitment letter is still an estimate.
Estimate only. For exact penalty figures, ask the client for their original mortgage commitment letter so we can use the actual posted rate at funding. Lender-specific rounding and amortization adjustments may move the final number by a few hundred dollars.
Refinancing costs
What it costs to make the switch.
Current debts
Add high-interest debts to find what folding them in does.
No debts added.
When you break even
The month the interest you save pays back the cost of switching.
The line is the interest you save on the same balance, less the cost of switching. Once it crosses $0, the refinance has paid for itself.
Your current mortgage has 3 years left on its term. It is assumed to renew at the same rate and payment for the last 2 years of the 5 years compared. Future rates are not known.
Month by month
The payment change, and the interest saved after costs.
| Month | Payment change | Running total | Interest saved less costs |
|---|---|---|---|
| 1 | $259 | $259 | -$7,873 |
| 2 | $259 | $519 | -$7,497 |
| 3 | $259 | $778 | -$7,121 |
| 4 | $259 | $1,038 | -$6,745 |
| 5 | $259 | $1,297 | -$6,369 |
| 6 | $259 | $1,557 | -$5,994 |
| 7 | $259 | $1,816 | -$5,619 |
| 8 | $259 | $2,076 | -$5,244 |
| 9 | $259 | $2,335 | -$4,869 |
| 10 | $259 | $2,595 | -$4,494 |
| 11 | $259 | $2,854 | -$4,120 |
| 12 | $259 | $3,114 | -$3,746 |
| 13 | $259 | $3,373 | -$3,372 |
| 14 | $259 | $3,633 | -$2,998 |
| 15 | $259 | $3,892 | -$2,625 |
| 16 | $259 | $4,152 | -$2,251 |
| 17 | $259 | $4,411 | -$1,878 |
| 18 | $259 | $4,671 | -$1,506 |
| 19 | $259 | $4,930 | -$1,133 |
| 20 | $259 | $5,190 | -$761 |
| 21 | $259 | $5,449 | -$389 |
| 22 | $259 | $5,709 | -$18 |
| 23break even | $259 | $5,968 | +$354 |
| 24 | $259 | $6,228 | +$725 |
| 25 | $259 | $6,487 | +$1,095 |
| 26 | $259 | $6,747 | +$1,466 |
| 27 | $259 | $7,006 | +$1,836 |
| 28 | $259 | $7,266 | +$2,206 |
| 29 | $259 | $7,525 | +$2,576 |
| 30 | $259 | $7,785 | +$2,945 |
| 31 | $259 | $8,044 | +$3,314 |
| 32 | $259 | $8,304 | +$3,683 |
| 33 | $259 | $8,563 | +$4,051 |
| 34 | $259 | $8,822 | +$4,419 |
| 35 | $259 | $9,082 | +$4,787 |
| 36 | $259 | $9,341 | +$5,154 |
| 37 | $259 | $9,601 | +$5,521 |
| 38 | $259 | $9,860 | +$5,888 |
| 39 | $259 | $10,120 | +$6,254 |
| 40 | $259 | $10,379 | +$6,620 |
| 41 | $259 | $10,639 | +$6,986 |
| 42 | $259 | $10,898 | +$7,351 |
| 43 | $259 | $11,158 | +$7,716 |
| 44 | $259 | $11,417 | +$8,081 |
| 45 | $259 | $11,677 | +$8,445 |
| 46 | $259 | $11,936 | +$8,809 |
| 47 | $259 | $12,196 | +$9,172 |
| 48 | $259 | $12,455 | +$9,536 |
| 49 | $259 | $12,715 | +$9,898 |
| 50 | $259 | $12,974 | +$10,261 |
| 51 | $259 | $13,234 | +$10,623 |
| 52 | $259 | $13,493 | +$10,984 |
| 53 | $259 | $13,753 | +$11,345 |
| 54 | $259 | $14,012 | +$11,706 |
| 55 | $259 | $14,272 | +$12,066 |
| 56 | $259 | $14,531 | +$12,426 |
| 57 | $259 | $14,791 | +$12,786 |
| 58 | $259 | $15,050 | +$13,145 |
| 59 | $259 | $15,310 | +$13,503 |
| 60 | $259 | $15,569 | +$13,861 |
Disclaimer: This calculator is for illustrative purposes only and should not be relied upon for financial planning. Actual penalties depend on lender-specific calculations and rate changes daily. The estimate does not include reinvestment fees, discharge fees, assignment fees, or other administrative costs. The simplified IRD method does not factor in amortization or present value, which means estimated figures may differ from the lender’s final payout statement.