Mortgage Refinance Calculator

Should you refinance your mortgage? Use this calculator to find out if refinancing makes financial sense for your situation.

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When to Refinance Your Mortgage

Good Reasons to Refinance:

  • Interest rates have dropped significantly (typically 0.5% or more)
  • Your credit score has improved
  • You want to switch from ARM to fixed-rate
  • You want to shorten your loan term
  • You need to tap home equity

Consider These Factors:

  • How long you plan to stay in your home
  • Break-even point vs. your timeline
  • Closing costs and fees
  • Current loan balance and equity
  • Your debt-to-income ratio

Tip: If your break-even point is longer than you plan to stay in your home, refinancing may not be worth it.

Compare MA Credit Union Rates

See current refinance rates from Massachusetts credit unions.

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Understanding Mortgage Refinancing

Mortgage refinancing means replacing your current home loan with a new one, ideally with better terms. The most common reasons to refinance include securing a lower interest rate, changing your loan term, or switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.

How Much Can You Save by Refinancing?

The amount you can save depends on several factors, including the difference between your current and new interest rate, your remaining loan balance, and how long you plan to stay in your home. Generally, refinancing makes sense if you can reduce your rate by at least 0.5% to 1% and you'll stay in your home long enough to recoup the closing costs.

What is a Break-Even Point?

The break-even point is the number of months it will take for your monthly savings to equal your closing costs. For example, if you save $200 per month and paid $5,000 in closing costs, your break-even point is 25 months (about 2 years). After that point, all your monthly savings become pure profit.

Refinancing Costs in Massachusetts

In Massachusetts, typical refinancing costs range from 2% to 6% of the loan amount. These costs include loan origination fees, appraisal fees, title insurance, attorney fees (required in MA), and other closing costs. Many Massachusetts credit unions offer competitive refinance rates with lower fees than traditional banks.