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 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 Refinance Calculations

Details: Accurate payment estimates help determine if refinancing will save money by comparing current vs. new payments.

4. Using the Calculator

Tips: Enter the loan amount, interest rate (APR), and loan term (typically 15 or 30 years). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Should I include taxes/insurance in this calculation?
A: No, this calculates only principal and interest. Add property taxes and insurance separately for full payment estimate.

Q2: How does refinancing save money?
A: Savings come from lower interest rates, shorter terms, or cash-out options, but consider closing costs.

Q3: What's a good refinance rate?
A: Compare to current market rates. Generally, refinancing makes sense when rates are 0.5-1% below your current rate.

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

Q5: What's the break-even point for refinancing?
A: Divide total closing costs by monthly savings to find how many months until you recoup refinance costs.