Refinance & Cash-Out Refinance Calculator
Run detailed refinance and cash-out refinance scenarios with full amortization schedules. See how your monthly payment, payoff date, and total interest change if you refi, cash-out, or keep your current loan.
How to Use This Refinance Calculator
This interactive calculator lets you compare different refinance strategies for the same loan. We've preloaded 3 copies of a sample $350k loan started 2 years ago at 6.5%.
How to Explore Refinance Options:
- 1.First scenario - Leave as-is to represent your current loan
- 2.Second scenario - Use the "What-If Lab" to add a "Refinance" adjustment with your target rate
- 3.Third scenario - Add a "Cash-out refi" adjustment to see how extracting cash affects your payments
- 4.Compare total interest, monthly payments, and payoff dates across all three options
Customize the base loan: Click "Edit Individual Scenario" to change the purchase price, current rate, or loan start date to match your actual situation. Then switch back to "Compare Scenarios" to see how different refinance strategies stack up.
Enter Your Loan Details
Provide your current loan information to compare refinance options
What happens next: We'll generate 3 scenarios: your current loan, a refinance at the new rate, and a cash-out refinance option. You can customize these further using the What-If Lab.
Refinance vs Cash-Out Refinance – What's the Difference?
Standard Refinance
A traditional refinance replaces your current mortgage with a new one at a lower interest rate or different term. You don't receive any cash – the goal is to reduce your monthly payment, lower total interest paid, or pay off your loan faster. Common when rates drop or your credit improves.
Cash-Out Refinance
A cash-out refinance creates a new loan that's larger than your current balance. You receive the difference as cash, which you can use for home improvements, debt consolidation, or other major expenses. While your loan balance increases, you may still save on interest if the new rate is significantly lower.
When Does a Refinance Make Sense?
Interest Rate Drop
A general rule of thumb: refinancing makes sense when you can lower your rate by at least 0.5-1%. However, even smaller drops can be worthwhile if you plan to stay in your home long-term or have a large loan balance.
Time Remaining in Your Home
Refinancing has upfront costs (closing costs, appraisal fees, etc.). If you're planning to move within 1-2 years, you may not recoup these costs. Use the calculator to find your break-even point – the month when your cumulative savings exceed the refinance costs.
Break-Even on Closing Costs
Typical closing costs range from 2-6% of the loan amount. If refinancing saves you $200/month but costs $6,000 upfront, your break-even is 30 months. You can calculate this precisely using the amortization schedules in this tool.
Should I Refinance, Recast, or Make a Lump-Sum Payoff?
If your lender offers mortgage recasting, you can make a lump-sum payment toward your principal and have your monthly payment recalculated – without a full refinance. This typically costs only $200-500 (vs. thousands for a refi) and doesn't change your interest rate or term.
Want to compare recast vs refinance vs lump-sum payoff scenarios? Use our Mortgage Modeler and create scenarios with different paydown strategies. You can model all three options side-by-side in Compare Mode.
Frequently Asked Questions
Is it better to recast or refinance my mortgage?
It depends on your goals and current rate. Recast if you have extra cash and want to lower your monthly payment without changing your rate (ideal if you already have a low rate). Refinance if current market rates are significantly lower than your existing rate, or if you want to change your loan term.
What happens if I make a lump-sum payment instead?
A lump-sum payment reduces your principal immediately, lowering total interest and shortening your loan term. However, your monthly payment stays the same unless you recast. Use the extra payment feature in the calculator to see exactly how a one-time payment affects your amortization schedule.
Does a recast change my interest rate?
No. A mortgage recast keeps your existing interest rate and remaining term – it just re-amortizes your loan based on the new, lower principal balance after your lump-sum payment. This is different from a refinance, which creates an entirely new loan with a new rate and term.
How much can I save by refinancing?
It varies based on your loan amount, rate difference, and remaining term. For example, refinancing a $400,000 loan from 6.5% to 5.5% could save you roughly $250/month and over $90,000 in total interest over 30 years. Use the calculator above to see exact savings for your specific situation.
Explore More Mortgage Modeling Tools
Full Mortgage Modeler – Create unlimited scenarios with ARM analysis, extra payments, PMI tracking, and more
Portfolio Mode – Analyze multiple properties together and see your combined equity growth over time
Compare Mode – Place 2-4 scenarios side-by-side to see exactly how different strategies stack up