Compare the new mortgage
with the loan you have today.

Start with the mortgage you have

Record the current payoff, note rate, remaining term, principal-and-interest payment, and expected payoff date. Those numbers are the baseline for every comparison.

• Current principal balance and payoff quote
• Months or years remaining
• Current principal-and-interest payment
• Any mortgage insurance or recurring loan cost

Compare rate, APR, points, and credits

Rate affects principal and interest. APR incorporates the rate and certain finance charges. Points require more cash upfront; lender credits can reduce eligible closing costs while changing the rate.

• Use the same loan amount and term.
• Compare quotes from the same date and lock period.
• Review points and credits in dollars.
• Use current written terms rather than an advertised headline.

Do not compare payment alone

Extending the term can reduce the payment while increasing how long interest accrues. Compare payment, cost, remaining term, and interest over the period you expect to keep the loan.

Calculate the recovery period

Divide eligible upfront refinance costs by the estimated monthly savings for a simple recovery estimate. Then compare that period with how long you expect to keep the mortgage.

• Monthly change
• Cash required
• Months to recover cost
• New payoff date
• Interest during the expected holding period

Know what still has to be confirmed

Property value, credit, income, assets, debts, occupancy, title, insurance, and current pricing can change the final structure. A calculator is a planning tool; the lender's written disclosures control the transaction.