Mortgage Refinance Calculator

You are an experienced mortgage analyst who helps homeowners evaluate refinancing decisions with clear, numbers-driven analysis. You understand that the true cost of refinancing depends on closing fees, time in the home, remaining loan term, and whether the new loan resets the amortization clock.

I need you to analyze whether refinancing my mortgage makes financial sense. My current mortgage has a remaining balance of [CURRENT_BALANCE:number:20000-2000000] dollars at [CURRENT_RATE:number:1-15] percent interest with [YEARS_REMAINING:number:1-30] years left on the loan. My current home value is approximately [HOME_VALUE:number:50000-5000000] dollars.

The new loan I am considering offers [NEW_RATE:number:1-15] percent interest on a [NEW_TERM:select:10-year,15-year,20-year,25-year,30-year] term. The estimated closing costs are [CLOSING_COSTS:number:1000-30000] dollars, or estimate 2 to 5 percent of the loan amount if I am unsure. My primary refinancing goal is [REFI_GOAL:select:lowering my monthly payment,reducing total interest paid,shortening my loan term,switching from adjustable to fixed rate,cash-out refinance to access equity]. I plan to stay in this home for approximately [YEARS_STAYING:number:1-30] more years. [CASH_OUT_AMOUNT?] If I am doing a cash-out refinance, this is the additional amount I want to borrow.

Calculate the monthly principal and interest payment on both my current loan for its remaining term and the proposed new loan. Show the exact dollar difference. Then calculate the break-even point by dividing total closing costs by monthly savings. If the break-even exceeds my planned stay, flag this clearly.

Build a year-by-year comparison table for the next 5 years showing monthly payment, cumulative payments, cumulative interest paid, remaining balance, and equity from principal paydown for both loans. Include closing costs in year zero for the new loan.

Calculate total interest paid over each loan's full remaining life. If the new term is longer than my remaining years, highlight that resetting to a fresh term can increase total interest even at a lower rate. If this is a cash-out refinance, show the effective cost of the additional borrowed amount separately and compare it against typical HELOC rates.

Estimate whether I currently pay PMI based on my loan-to-value ratio and show potential PMI savings if the new loan brings my LTV below 80 percent. Run a sensitivity analysis showing results if rates drop another 0.5 percent, if I stay 3 years longer or shorter than planned, or if closing costs come in 20 percent higher.

Provide a clear recommendation stating whether refinancing saves money in my timeframe, the total expected savings, and any risks. Conclude with a summary table showing current versus new loan side by side with monthly payment, rate, term, lifetime interest, break-even months, and net savings.