Refinance 15 Year Fixed Calculator
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Reviewed by Calculator Editorial Team
Refinancing your mortgage to a 15-year fixed rate can significantly reduce your monthly payments and pay off your loan faster. Use our refinance 15 year fixed calculator to estimate your potential savings and new payment amounts before making a decision.
How to Use This Calculator
To calculate your potential refinance savings and new payment amounts:
- Enter your current mortgage balance (the total amount you owe).
- Input your current interest rate (the percentage you're currently paying).
- Enter the new 15-year fixed rate you're considering.
- Provide your estimated closing costs (typically 2-5% of the loan amount).
- Click "Calculate" to see your results.
The calculator will show you your estimated monthly payment, total interest paid over the life of the loan, and your potential savings compared to your current mortgage.
Formula Used
The calculator uses the standard mortgage payment formula to determine your new monthly payment:
Mortgage Payment Formula
Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Where:
- P = Principal loan amount (current mortgage balance)
- r = Monthly interest rate (new rate ÷ 12)
- n = Number of payments (15 years × 12 months)
The calculator also accounts for closing costs when calculating total savings.
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 15-year fixed rate of 4.5%. Your estimated closing costs are $3,000.
Using the calculator:
- Enter $200,000 as your current balance.
- Enter 6% as your current rate.
- Enter 4.5% as your new rate.
- Enter $3,000 as your closing costs.
- Click "Calculate".
The calculator will show you:
- Your new monthly payment would be approximately $1,450.
- Your current monthly payment would be about $1,650.
- You would save about $200 per month.
- You would pay a total of about $213,000 over 15 years compared to $243,000 with your current mortgage.
Comparison Table
Here's a comparison of a 15-year fixed refinance versus a 30-year fixed refinance for the same $200,000 loan at 4.5% interest:
| Term | Monthly Payment | Total Interest Paid | Total Cost |
|---|---|---|---|
| 15-year fixed | $1,450 | $13,000 | $213,000 |
| 30-year fixed | $950 | $73,000 | $273,000 |
As you can see, a 15-year fixed refinance can save you thousands in interest over the life of the loan while reducing your monthly payment.
Frequently Asked Questions
How much can I save by refinancing to a 15-year fixed rate?
You can typically save 20-40% on interest by refinancing to a 15-year fixed rate compared to a 30-year fixed rate, depending on your current interest rate and the new rate you qualify for.
What are the closing costs for refinancing?
Closing costs typically range from 2-5% of the loan amount. Common fees include appraisal fees, title insurance, origination fees, and loan processing fees.
Can I refinance if my credit score has dropped?
It's possible, but you may need to pay higher interest rates or closing costs. Lenders typically require a credit score of at least 620 for conventional loans and 580 for FHA loans.
How long does it take to refinance?
The refinance process typically takes 30-45 days from application to closing, though some lenders offer expedited options for an additional fee.
What happens if interest rates rise after I refinance?
Since you're locked into a fixed rate for 15 years, rising interest rates won't affect your payments. However, you may miss out on potential savings if rates drop significantly.