Mortgage Refinance
Should you refinance?
Refinancing can help you save on your mortgage or turn equity into cash in your pocket.
Plug in your info below to see your options.
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How to use a mortgage refinance calculator
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Mortgage Refinance Calculator Uses
A mortgage refinance calculator estimates potential savings by comparing your current loan with new refinance options. Enter your existing mortgage balance, interest rate, loan term, and estimated closing costs. The calculator then shows your new monthly payment, interest savings, total refinance cost, and break-even point. This helps Michigan homeowners and US borrowers evaluate if refinancing saves money by lowering payments, reducing loan term, or accessing equity. Use this precise tool to make confident, data-driven mortgage refinance decisions with trusted local mortgage brokers.
Mortgage formula
What makes our mortgage calculator different
Highly customizable inputs: Easily enter your current mortgage balance, interest rate, loan term, closing costs, and ZIP code to generate precise monthly refinance payment estimates tailored to your Michigan or US home loan situation.
Dynamic tax, insurance & HOA calculation: Our calculator automatically factors in property taxes, homeowners insurance, and HOA fees based on your ZIP code, with the option to override for localized accuracy.
Real-time savings insights: Instantly see your estimated monthly savings, total interest saved, and break-even point to evaluate the financial benefits of refinancing your mortgage.
Multiple loan term and rate scenarios: Quickly compare different refinance loan terms, rates, and cash-out amounts to find the best fit for your budget and refinancing goals.
User-friendly and fast: Designed with responsive calculations, so results update immediately as you change inputs—no waiting, no guesswork.
Trusted local guidance: Combining expert mortgage knowledge with Michigan-specific data ensures your refinance estimates reflect real-world costs and market conditions.
Mortgage terminology
Current Mortgage Balance: The outstanding principal amount left on your existing home loan before refinancing.
Interest Rate: The annual percentage rate (APR) charged on the refinance loan, affecting monthly payments and total interest costs.
Loan Term: Length of time (in years) over which the refinance loan is repaid—common terms are 15, 20, or 30 years.
Closing Costs: Fees associated with completing the refinance, including appraisal, title, and lender fees, which can affect your break-even point.
Monthly Payment: The amount due each month encompassing principal, interest, taxes, insurance, and possibly HOA fees after refinancing.
Break-Even Point: The number of months it takes for the monthly savings from refinancing to cover the closing costs.
Total Interest Saved: The amount of money you save in interest over the life of the loan by refinancing at a lower rate.
Amortization Schedule: A detailed table showing the breakdown of each monthly payment toward principal and interest over the loan’s duration.
Refinance Cash-Out: Borrowing additional money during refinancing by increasing your loan amount beyond your current mortgage balance.
Equity: The portion of your home’s value that you own outright, which impacts your ability to refinance and loan terms.
3 Easy Steps to Your Mortgage
Apply Online
Fill out a secure, digital application in minutes—no paperwork required.
Get Instant Decision
Receive real-time approval status and next steps right in your dashboard.
Close & Move In
Sign digitally and schedule your closing—ready for the keys, stress-free.
Mortgage Refinance Calculator FAQ's
What’s a good break-even target for refinancing?
A typical break-even target ranges from 12 to 24 months, meaning you should recoup refinance closing costs within 1-2 years through monthly savings. This helps Michigan homeowners decide if lowering interest rates or monthly payments makes financial sense.
Should I roll closing costs into the new loan?
Rolling closing costs into your new mortgage can reduce upfront expenses but may increase your loan balance and monthly payment. Evaluate with a refinance calculator to see if financing costs aligns with your refinance goals and Michigan market rates.
Is it smarter to shorten my term or lower my payment?
Shortening your loan term saves on total interest but raises monthly payments; lowering payments improves cash flow but may cost more long term. Use scenario analysis with our refinance calculator to find the best option for your budget and financial goals.
Can I drop PMI when I refinance?
Shortening your loan term saves on total interest but raises monthly payments; lowering payments improves cash flow but may cost more long term. Use scenario analysis with our refinance calculator to find the best option for your budget and financial goals.
What credit score and LTV are needed to refi?
Most lenders prefer a minimum credit score of 620 for refinancing. Loan-to-Value (LTV) requirements usually max out at 80%-90%, depending on loan type and lender guidelines in Michigan and nationwide.
Will a refi restart my amortization schedule?
Refinancing sets a new amortization schedule based on the new loan term and balance, which can reset how quickly you pay down the principal and interest.
What about cash-out to pay debts?
Cash-out refinancing allows you to tap into home equity to pay off debts or fund expenses. Align Lending offers expert cash-out refinance options with competitive rates tailored for Michigan homeowners.
How quickly can I refi after a purchase?
You can typically refinance anytime after purchase, but some lenders require you to wait 6-12 months. Using a refinance calculator helps assess timing and potential savings.
Will a refi affect my property taxes?
Refinancing doesn’t change your property tax amount, but your escrow payment may adjust based on tax reassessments or changes in insurance premiums.
Do I need an appraisal?
Most refinance loans require a home appraisal to verify current market value. Some streamlined or VA refinance programs may waive this under certain conditions.
