A refinance is a new loan that replaces an existing mortgage — typically to get more favorable terms or payment options. Let’s say you purchased a home with a 30-year fixed rate mortgage at an interest rate of 4.75%. A few years later, you notice that interest rates are hovering around 4.25%. While that 0.5% difference might not seem like much, it can add up to a significant amount of money over the life of your loan.


% Down 20% 20%
Sample Closing Costs $4,800.00 $4,800.00
Loan Amount $200,000.00 $200,000.00
Sample Rate 4.75% 4.25%
Sample Loan APR 4.957% 4.45%
Est. Monthly Payment $1,043.29 $983.88
Total Payments $375,588.00 $354,197.00
Total Interest $175,588.00 $154,197.00

The calculation above assumes annual amortization. This calculation is provided as an illustration to demonstrate potential savings. It is not intended to provide investment advice, nor is it a guarantee of applicability or accuracy in regard to your personalized circumstances. Not all borrowers will qualify for the rates listed above. This is not a loan approval. Estimated monthly payment does not include homeowners insurance or taxes. Actual payment will be higher. Annual Percentage Rate (APR) incorporates fees into a single rate so that it is possible to compare loans with different rates, fees or terms. Please seek advice from a licensed loan officer to see if refinancing may be right for you.