Use this page to test a Navy Federal Credit Union refinance quote against your current mortgage. The starting balance, rates, term, and costs are examples - replace them with the lender's Loan Estimate. Incolator is not affiliated with or endorsed by Navy Federal Credit Union, and this page does not display a current advertised rate. Open the original calculator.
You start in the hole by the closing costs. Each month of a lower payment climbs you out — the line crosses zero at your break-even. Hover any month.
Both loans are amortized monthly. The break-even is the month when your accumulated payment savings first cover the closing costs. The lifetime view compares total interest on the old schedule against total interest on the new loan plus the closing costs — including the extra years if you reset the term, which is where refis quietly go wrong.
An estimate for planning. Points, escrow changes and cash-out amounts are not modeled — enter points inside the closing costs. Tax effects of mortgage interest are ignored (most people take the standard deduction). If you may sell or refinance again before the break-even month, the deal loses its point — the verdict tells you that month for exactly this reason.
old payment = amortization(balance, old rate, years left)
new payment = amortization(balance, new rate, new term)
break-even = first month when (old − new) × months > closing costs
lifetime = old total interest − new total interest − closing costs