Privacy-first refinance math
Find the break-even month, target rate, cash-flow change, and total financial benefit before you get a quote.
| Year | Current payments | Refi payments | Difference | Current balance | Refi balance | Net financial position |
|---|
| Year | Invested | Investment value | Costs remaining | Net advantage |
|---|
Optional fixed monthly estimates. Confirm when mortgage insurance ends with your lender.
A mortgage is usually amortized: each payment covers interest on the remaining balance plus some principal. Early on, the balance is high, so the interest slice is large. Later, more of each payment reduces the loan.
A refinance can lower payment through a lower rate, a longer term, a principal reduction, or rolled-in costs. A lower payment is not automatically a lower total cost, especially when a 26-year remaining loan becomes a new 30-year loan.
Lenders may earn origination fees, closing costs, servicing income, interest over time, or sell the loan. A lower rate for you can still be a profitable new loan for them.
Suppose a homeowner has a $410,000 balance, 27 years left, and a 7.25% rate. A 5.95% refinance may lower the payment, but closing costs create an early loss. The right comparison is the new payment, fees, and both remaining balances at the date the homeowner expects to sell or refinance again.
For every month, Refi Reckoner compares payments made plus balance still owed under the current loan and a refinance. The difference is a net financial position, not just cash left in a checking account. Taxes, insurance, lender credits, rate locks, and changing property values are outside this estimate.
Rates are fixed, payments are principal and interest only, and the home value does not change. Closing costs can be paid upfront or rolled into the balance. A lender’s final quote, payoff statement, and mortgage-insurance rules control the real transaction.
Does a lower payment always save money? No. A longer new term can lower the payment while increasing lifetime cost. What is LTV? Loan-to-value is your loan balance divided by home value. It helps lenders assess equity and may affect mortgage insurance. Is this a loan offer? No. It is an educational estimate.
Borrowers can win when interest savings and cash-flow benefits beat closing costs and term reset. Lenders can win by creating, retaining, selling, or servicing a new loan.
Refinancing is not automatically good or bad. The question is whether the savings beat closing costs, term reset, and your expected time with the loan.