How Our Refinance Calculator Works

Please enter your information in our refinance calculator to estimate how much you could save monthly as well as how much you could save over the next three years. The results displayed show you several different loan options.

Terms Used in this Refinance Calculator

Monthly Mortgage Payment

A monthly mortgage payment typically contains four parts called the PITI (loan principal, interest, taxes, and insurance). If you pay your taxes and insurance on your own, you pay only principal and interest with your mortgage payments.

Interest Rate

The fee charged by a lender for the use of borrowed money. Rates are dependant upon several factors, including the inflation rate, length of the loan, and the borrower's credit score. Interest rates are usually the expressed as a percentage per year.

Annual Percentage Rate (APR)

There are two interest rates applied to your mortgage: the Actual Interest Rate and the Annual Percentage Rate. The Actual Rate is the annual interest rate you pay on your loan (sometimes referred to as the "note rate"), and is the rate used to calculate your monthly mortgage payments. The amount of interest you pay, as determined by your Actual Rate, is only one of the costs associated with your mortgage; there may be others. The Annual Percentage Rate (APR) includes both your interest and any additional costs or prepaid finance charges you might pay such as prepaid interest, private mortgage insurance, closing fees, points, etc. Your APR represents the total cost of credit on a yearly basis after all charges are taken into consideration. It will usually be slightly higher than your Actual Rate because it includes these additional items and assumes you will keep the loan to maturity.