Read the result correctly
A lower monthly payment is not always a saving: a longer term and switching costs can increase the total cost.
When can refinancing help?
When all payments and fees under the new plan are lower than the remaining cost of the current loan.
Which costs should be included?
Origination fees, insurance, early settlement fees and other switching costs.
Frequently asked questions
What is refinancing?
Replacing existing debt with a new loan plan.
Is a lower payment always better?
No. A longer term can increase total interest.
How do I include fees?
Subtract all switching costs from the expected saving.
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Read the calculation methodology and finance guide for formulas and assumptions. Calculation methodology · Finance guide