The amount you could save through refinancing depends on several factors, including your current mortgage rate, new rate, remaining balance, loan term, and refinancing costs. A lower interest rate can reduce the interest portion of your payment, but extending the loan term may increase the total interest paid over time even if the monthly payment falls. You should therefore look beyond the monthly payment and compare the overall cost of your current mortgage with the proposed refinance. Closing costs and prepaid expenses should also be included when estimating your potential savings. A refinance calculator can help you compare estimated payments, while the refinance break-even calculator can help estimate how long it may take for your savings to offset the refinancing costs. Actual savings will depend on the loan terms you qualify for.
