Loan Refinance Calculator United States — Tax Year 2025
See exactly how much you'll save by refinancing your loan to a lower rate. For United States. Uses current Tax Year 2025 data.
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How much you still owe on your existing loan
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Processing fees, valuation fees, legal costs
Common questions — United States
When does refinancing make sense?
Refinancing makes sense when: (1) rates have dropped at least 1% since you took your loan, (2) you plan to keep the loan long enough to recover the closing costs, and (3) the break-even period is less than how long you'll stay in the loan.
What are typical refinancing costs?
Processing fee (0.5%–1% of loan), legal fees, valuation charges, and sometimes a prepayment penalty on your old loan. In India, total costs are typically ₹20,000–₹1,00,000. In the US, 2%–5% of the loan amount.
Should I extend my loan tenure when refinancing?
Extending the tenure lowers your EMI but means you pay interest for longer. If your goal is lower monthly payments, extending may be okay. If your goal is to save total interest, keep the same or shorter tenure.
Can I refinance with my current bank?
Yes — this is called a "balance transfer" or "rate renegotiation" and often has lower fees than switching banks. Ask your bank to match competitor rates before going through the process of switching.
Does refinancing restart my amortisation schedule?
Yes. When you refinance, you start a new loan from scratch. Your early payments will again be mostly interest. This is why extending the tenure while reducing rate may not save as much as it appears.