Refinance Calculator & Costs
How Much Does Refinancing Cost?
The cost to refinance typically ranges from 2% to 5% of the loan amount. Common costs include lender fees, appraisal charges, and closing costs.
Using a Mortgage Refinance Calculator
A refinance calculator helps compare your current loan terms with the new terms to determine your potential savings.
How Much Does Refinancing Cost?
The total cost of refinancing typically ranges between 2% and 5% of the loan amount. Some common costs include:
- Appraisal Fees: $300 to $500 for a home appraisal.
- Closing Costs: Includes title fees, escrow fees, and recording fees.
- Lender Fees: Origination fees or discount points to secure a lower interest rate.
Understanding the Break-Even Point
The break-even point is the time it takes for the savings from your lower monthly payments to cover the refinancing costs. If you plan to stay in your home longer than the break-even period, refinancing may be beneficial.
When to Consider Refinancing
Refinancing is most beneficial when:
- Interest rates drop significantly below your current rate.
- Your credit score has improved, allowing you to secure better terms.
- You want to switch from an adjustable-rate to a fixed-rate mortgage.
- You plan to cash out home equity for renovations or debt consolidation.
