MORTGAGE REFINANCE CALCULATOR

See how much less you might pay each month by refinancing.

See if refinancing makes sense for you. Whether you want to lower your monthly payment or shorten your mortgage term, see how much refinancing to today's rates can help you better manage your mortgage or meet your goals.

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Step one Tell us about your current loan

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Step two Tell us about your refinancing loan

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    Question answer section

    Question

    What is a mortgage refinance?

    Answer

    A mortgage refinance allows you to obtain a new mortgage loan replacing your current mortgage. At times when mortgage rates are low, you may want to consider a refinance to lower your rate so that you are paying less money over the life of your mortgage. You can also choose to extend or shorten your current loan term with your new loan depending upon your personal goals. You may also be able to take cash out of your equity when you refinance to use for a variety of purposes including home improvement, debt consolidation, or paying for major expenses or purchases. Many conventional refinance lenders charge closing costs when you refinance; however, Discover offers loans with zero application fees and zero cash due at closing.

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    Question

    What is cash-out refinance?

    Answer

    A cash out refinance is when you take a portion of your home's equity out as cash when refinancing your current mortgage. While a traditional refinanced loan will only be for the amount that you owe on your existing mortgage, a cash-out refinance loan will increase the amount of the loan, allowing you to both pay off your existing mortgage and take a lump-sum payment in cash for the additional amount of the loan. When mortgage rates are low, a cash out refinance may be advantageous over other types of credit like credit card, personal loans, or HELOCs that have a variable rate.

    Discover's cash out refinance loan has a low, fixed rates that never change for the life of the loan, as well as has no cash due at closing.

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    Question

    What is the difference between APR and interest rate?

    Answer

    Your interest rate is the direct charge for borrowing money.

    The APR, however, reflects the entire cost of your mortgage as a yearly rate and includes the interest rate, origination charge, discount points, and other costs such as lender fees, processing costs, documentation fees, prepaid mortgage interest and upfront and monthly mortgage insurance premium. When comparing loans across different lenders, it is best to use the quoted APRs for the same type and term of loan.

    Question

    What are the benefits of a home equity loan or mortgage refinance from Discover Home Loans?

    Answer

    With Discover, you will not have to pay any application fees, origination fees, or appraisal fees. Since a home equity loan or mortgage refinance is a secured debt, the average interest rate is typically lower than what you'll pay on an average credit card or other form of unsecured debt.

    Question

    Why do people refinance their home mortgage loan?

    Answer

    Refinancing your home mortgage allows you to pay off your original mortgage with a new loan. Typically, people refinance their original mortgage loan for one or more reasons:

    • to earn a better interest rate,
    • to convert a variable rate to a fixed rate (or vice-versa),
    • to reduce monthly payments by extending the repayment term of the loan , or
    • to reduce interest charges paid over the life of the loan by reducing the repayment term of the loan.

    You may be able to save an estimated annually.

    Current monthly payment

    Current loan

    Refinance monthly payment

    Refinancing

    Savings per month$56

    Number of months to recoup closing costs10

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    What does this possibly mean for me?

    Based on the information you provided, the amount above can give you an idea of the estimated monthly reduction in your payment you could achieve by refinancing your existing mortgage at the terms you selected. It's important to consider upfront closing costs on your new loan, and the time it will take to recoup those costs. Note that some of the reduction in payments may reflect extending the due date on your loan rather than a lower interest rate. If your refinance is at a lower rate than the previous loan, you may save money if you continue making the same or higher payments. If you lower your payments too, however, you may pay higher total interest even though your rate is lower, because the debt is extended over a longer period.

    You selected an adjustable rate mortgage or ARM. The amount above can give you an idea of the estimated monthly reduction in your mortgage payment you could achieve during the initial, fixed rate portion of your loan period* by refinancing your existing mortgage at the terms you selected. It's important to consider upfront closing costs on your new loan, and the time it will take to recoup those costs. In addition, you may want to discuss with a Discover mortgage banker any potential effects of changing from extending the term of your loan(s). Note that some of the reduction in payments may reflect extending the due date on your loan rather than a lower interest rate.

    Call our helpful mortgage bankers at 1-888-866-1212 to start the conversation about whether refinancing is right for you.

    * For example, for a 5/1 ARM, the fixed rate period is 5 years, or 60 months. After the fixed rate period, your payment may change based on the change in the index used to calculate your interest rate.

    Questions? Give us a call at 1-855-361-3435.

    We're here Monday through Friday 8am–10pm ET. Or you can share a little about yourself and we'll get back to you with a no-obligation quote.