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Mortgage refinance costs calculator

 

 

Learn the basics

 

Refinancing your existing mortgage Footnote 1Opens overlay could help you pay off your home sooner, lower your monthly payment or, with a cash-out refinance, you could tap into your home's equity.

Calculate refinance costs

 

Our calculator Footnote 2Opens overlay will estimate the amount you may pay at closing if you refinance. Just enter your loan info to get started. Scroll further down the page for a more in-depth explanation of the info we need.

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Once you decide if the initial cost will help you save money on your mortgage in the long run, start preapproval Footnote 3Opens overlay online to get started.

 

 

Understanding your results

 

When complete, the graph shows you the estimated amount you may pay at closing. Make sure you understand what refinancing means, why you might consider it and whether that initial cost will help you save money on your mortgage in the long run.

 

 

How to estimate your costs to refinance

The calculator above estimates the cost of refinancing your home using basic information. Start by putting some numbers into the Loan Info section:

  • Estimated market value. This is how much your home will likely sell for. If you aren't sure, use our Home Value Estimator tool.
  • Loan amount. This is how much principal you owe remaining on your current mortgage. Don't include any interest here.
  • Term (years). Type in how many years you want to pay off the new loan. You can choose a standard 30-year mortgage, or you can choose a shorter term.
  • Interest rate. While interest rates vary depending on your credit score and other factors, you can put an average in here to get an estimate. Check out today's refinance rates for a more accurate prediction.

For a more detailed estimate

  • Taxes & insurance. Enter in the annual cost of your property taxes and homeowner’s insurance.
  • Origination fees. This is the cost the lender charges to process the new home loan. You can also factor in the cost of buying mortgage discount points.
  • Other settlement charges. These are expenses associated with refinancing. These include an appraisal fee and lender's title insurance.

Explore by looking at different refinance scenarios by changing the numbers. For example, you might want to see how refinancing will affect your payment if you opt for a 20-year loan as opposed to a 30-year loan.

 

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Refinancing FAQs

Refinancing is replacing your old mortgage with a new mortgage. The process to refinance is very similar to the process you went through when you originally purchased your home. You apply with a lender, are approved and go through a closing process. You also pay closing costs, which are generally somewhere between 3% and 6% of your loan amount—the above calculator provides you with a closer estimate.

There are many reasons to refinance a mortgage. They include:

 

  • Securing a lower interest rate. Maybe you bought your home when interest rates were higher. By refinancing when rates are low, it can decrease your monthly mortgage payment amount as well as the overall cost of your loan.
  • Changing the terms of your loan. If you hope to pay off your home sooner, refinancing may be a way to do that. You can also extend the length of a loan, possibly lowering your monthly payment obligation.
  • Switching from an adjustable-rate mortgage Footnote 4Opens overlay to a fixed-rate mortgage. Adjustable-rate mortgages can be unpredictable, and your payment can fluctuate along with the market. Switching to a fixed-rate mortgage can lock in an interest rate and keep your payment amount predictable.
  • Taking someone's name off of the mortgage. If you need to take a co-signer off of the original mortgage, such as due to a divorce, you'll need to refinance the property. This secures a new mortgage in your name only.
  • Cashing out the equity in your home. Refinancing can allow you to cash out part of the equity you have in your home. You can then use that money to pay for things like education, or remodeling projects. Footnote 5Opens overlay

Borrowers will choose between traditional refinancing or cash-out refinancing. Which type you choose largely depends on your financial goals.

 

  • Traditional refinance. This is the refinancing option most people choose. This type of refinancing can help you lower your interest rate, reduce your monthly mortgage payment amount or secure a fixed-rate mortgage.
  • Cash-out refinance. This refinancing option allows you to cash out part of the equity that you have in your home. The lender will add the amount you take out of your equity onto your new mortgage balance. You can use that money for whatever you want, including paying off debt Footnote 6Opens overlay or using it to fix up your home.

If you aren't sure which is the better option for your property, you can talk to a Home Lending Advisor for more information.

Generally speaking, one or more of the following conditions needs to be present before you should consider refinancing your mortgage:

  • Mortgage interest rates are falling 
  • Your home has significantly appreciated in market value
  • You've been making payments on your original 30-year mortgage for less than ten years

Refinancing may not be ideal if the following situations apply to you.

  • Your financial situation has worsened. If your credit score is lower than it was when you obtained your original mortgage, it's unlikely that a refinance loan will provide improved terms. A poor credit rating often leads to higher interest rates and payments.
  • You can't afford closing costs. Generally, refinancing only saves you money if the savings from lowering your monthly payments outweigh the closing costs of refinancing. If you're paying out more in closing costs, you won't actually benefit from refinancing.
  • You're planning to move soon. Refinancing means taking out a new mortgage loan. This provides you with little to no benefits if you plan to sell your home before you have time to recoup the costs from refinancing.
  • Your existing mortgage includes a prepayment penalty. If you have to pay off a fee when you pay off your mortgage, your breakeven period will take significantly longer. Since a prepayment penalty needs to be paid off immediately, you may not even be able to afford to refinance. If you have a Chase mortgage, Chase does not charge a prepayment penalty fee.

When deciding whether to refinance or not, be sure to calculate the break-even point. This is the point at which you pay yourself back for the cost of refinancing your property and where you begin to save money on the loan. Knowing the break-even point helps you decide if refinancing is a smart financial option.

 

To find the break-even point on your refinancing deal, look at how much refinancing costs you in addition to how much you'll save on your monthly payments. For example, say your home is worth $300,000, and you want a 15-year fixed-rate mortgage for the remaining loan principal balance of $150,000. Perhaps current interest rates are 3.125%. Plugging this information into the refinance costs calculator, you can see that the cost to refinance your home would be $4,280.

 

Let's say your current mortgage payment is $1,120 a month. Under the terms of your refinancing offer, your new monthly mortgage payment is about $1,045. That equals a savings of $75 a month.

 

To find your breakeven point, divide your total refinancing costs ($4,280) by your monthly savings ($75). This tells you how many months it will take you to break even on the expense of refinancing. In this example, you'll end up breaking even on the refinancing cost after 57 months, or a little under five years.

 

Total refinancing costs / Monthly savings = #Months it will take you to break even 

 

That means if you plan on living in your home for more than five years, you could end up saving money over the term of the loan. You'd save both on your monthly payments and the amount of interest you'll end up paying over the lifetime of the loan. If you plan on moving in the next few years, though, then refinancing may not be your best option. You could end up losing money.

 

Comparing your future plans and your break-even point will help you decide whether refinancing is the best option.

When you begin to explore your refinancing options, take your closing costs into consideration. Not only will this affect your break-even point, but if you don’t have the cash on hand, it may make refinancing a less viable option for you financially.

 

Some lenders allow you to roll some of your refinancing costs into your loan principal balance. This means you’ll have a slightly higher mortgage balance but won’t have to come up with the cash up front. You can look for lenders offering this option, which is sometimes called a no-cost refinance.

 

While refinancing can be a great way to save money on your mortgage or to get cash out of your home’s equity, it’s not ideal for everyone. You can use the refinance costs calculator to start your research. Make sure you look at today’s refinance rates, too, to see how they compare with the interest rate you are paying on your current mortgage. Finally, you can speak to a Home Lending Advisor if you’d like to start the refinancing process or to get answers to your refinancing questions.

Yes. Chase offers a variety of options that allow you to tap into your home's equity and take cash out. Consult your Home Lending Advisor for cash-out refinancing options for you.

Cash-out refinancing can help homeowners who want to consolidate high-interest debt. Because your mortgage interest rate is likely to be lower than rates on credit cards or other types of bank loans, consolidating debt may reduce your overall monthly debt payments.

Yes, in most cases. However, depending on the circumstances, an appraisal may not be required.

Be prepared with these essential resources

Different types of refinances

 

Most loans fall into one of two categories — fixed-rate and adjustable-rate. We’ll help you choose the right one for your needs.

How to refinance a home

You successfully qualified for a mortgage and bought a home. Fast-forward several years and there may be several reasons to consider refinancing.

Beginner’s guide to cash-out refinance

This lets you use the equity in your home to get the cash you need for things like home improvements, medical bills, paying for college and other large expenses. Here’s what you need to know.