Mortgage Checkup Calculator

This calculator can help you understand if it makes sense to refinance your current mortgage. Forget the old wives tale about rates needing to be 2% lower before refinancing.


A better rule of thumb is to look at your total mortgage balance and the rate. Divide $125,000 by your loan balance - and that will give you the rate drop you need for a refinance to make sense. If you have a first and a second mortgage - enter both - and the blended rate is the rate to examine - that's the rate you're paying each month.


Keep in mind that you can always try a no closing cost refinance - savings may occur immediately.  

First Mortgage Second Mortgage
Loan Amount: Loan Amount:

Loan Term:

years Loan Term: years
Interest Rate: Interest Rate:

Payment Loan 1 Payment Loan 2
$ $

Total Payments:


Blended Interest Rate
for both loans:
Total Mortgage Debt:



Your new mortgage rate needs to be this far below the blended rate for a refinance to make sense:
There are also other reasons to refinance - like locking in an ARM rate to the safety of a fixed rate, or changing to an interest only payments loan.