1. What is a Refi Mortgage Payment Calculator?

Definition: This calculator estimates the monthly payment for a refinanced mortgage based on loan amount, interest rate, and term.

Purpose: It helps homeowners evaluate refinancing options by showing potential monthly savings or costs.

2. How Does the Calculator Work?

The calculator uses the standard mortgage payment formula:

Where:

• \( M \) — Monthly payment (USD)
• \( P \) — Loan principal (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of payments (term in years × 12)

Explanation: The formula accounts for both principal and interest payments over the loan term.

3. Importance of Mortgage Payment Calculation

Details: Accurate payment estimation helps determine affordability, compare loan options, and plan household budgets.

4. Using the Calculator

Tips: Enter the loan amount, annual interest rate (without % sign), and loan term in years. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Does this include taxes and insurance?
A: No, this calculates only principal and interest. Add 1/12 of annual property taxes and insurance for total monthly payment.

Q2: How does refinancing affect payments?
A: Lower rates reduce payments; shorter terms increase payments but save interest; cash-out refinances increase principal.

Q3: What's a good refinance rate?
A: Rates vary by market, but generally 0.5-1% below your current rate makes refinancing worthwhile.

Q4: How do points affect the calculation?
A: Points (prepaid interest) lower the rate but increase upfront costs. This calculator uses the final rate after points.

Q5: Why does my actual payment differ slightly?
A: Lenders may use slightly different methods or payment schedules (e.g., biweekly vs monthly).