15 Years Refinance Calculator
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Reviewed by Calculator Editorial Team
Refinancing your mortgage over 15 years can provide significant savings if interest rates are lower than your current rate. This calculator helps you estimate your potential monthly payments, total interest paid, and savings compared to your current mortgage.
How to Use This Calculator
To use the 15-year refinancing calculator, follow these steps:
- Enter your current mortgage balance in the "Current Loan Balance" field.
- Input your current interest rate in the "Current Interest Rate" field.
- Enter the new interest rate you're considering in the "New Interest Rate" field.
- Click the "Calculate" button to see your results.
The calculator will display your estimated monthly payment, total interest paid over 15 years, and the savings compared to your current mortgage.
Formula Used
The calculator uses the standard mortgage payment formula to calculate your monthly payment:
Mortgage Payment Formula
Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate divided by 12)
- n = Number of payments (loan term in years × 12)
The total interest paid is calculated by subtracting the original loan amount from the total amount paid over the life of the loan.
Worked Example
Let's say you have a $200,000 mortgage with a current interest rate of 6% and you're considering refinancing to a new rate of 4% over 15 years.
Using the calculator:
- Enter $200,000 as the current loan balance.
- Enter 6% as the current interest rate.
- Enter 4% as the new interest rate.
- Click "Calculate".
The calculator will show that your estimated monthly payment would be $1,125, you would pay $126,000 in total interest, and you would save $120,000 in interest compared to your current mortgage.
Comparison Table
This table compares the results of refinancing to a 15-year term versus keeping your current mortgage term.
| Metric | 15-Year Refinance | Current Mortgage |
|---|---|---|
| Monthly Payment | $1,125 | $1,300 |
| Total Interest Paid | $126,000 | $180,000 |
| Total Amount Paid | $326,000 | $380,000 |
| Interest Savings | $54,000 | $0 |
Frequently Asked Questions
How does refinancing affect my credit score?
Refinancing can impact your credit score, but the effect depends on how you manage the process. Closing your current mortgage and opening a new one can cause a temporary drop in your score, but it typically bounces back within a few months.
What are the closing costs for refinancing?
Closing costs for refinancing typically range from 2% to 5% of the loan amount. These costs may include appraisal fees, title insurance, origination fees, and other expenses. Make sure to factor these costs into your decision.
Can I refinance if I have bad credit?
Refinancing with bad credit is possible but may require a higher interest rate or larger down payment. Some lenders specialize in refinancing for borrowers with less-than-perfect credit. It's important to shop around and compare offers.
How long does the refinancing process take?
The refinancing process typically takes 30 to 45 days from application to closing. This includes time for loan approval, appraisal, and processing. Some lenders offer expedited processing for an additional fee.