Is refinancing worth it?

How to use it

Enter your current balance, rate and remaining term, then the rate you could refinance at. Add the penalty and the costs, and the calculator compares what you would pay either way over the time that is left.

Reading the result

Breaking a closed mortgage costs a penalty: usually three months of interest on a variable rate, and on a fixed rate the greater of three months of interest or the interest rate differential, which can be large when rates have fallen. Add legal fees, a discharge fee and often an appraisal. A refinance can also release equity, generally up to eighty percent of the home’s appraised value, which changes the question from saving money to what the money is for. If the savings only just cover the costs, a renewal or a blended rate with your current lender may be the better move, and I can get the exact penalty from your lender before you decide.

Keep reading: Mortgage refinancing