Refinance to 15 Year Calculator

Refinancing your mortgage to a 15-year term can significantly reduce your monthly payments and total interest costs. Use our refinance to 15 year calculator to estimate your potential savings and new payment amount.

How to Use This Calculator

Enter your current mortgage details and the new interest rate you're qualifying for, then click Calculate to see your estimated new payment and savings.

Note: This calculator provides estimates only. Actual results may vary based on your specific loan terms and lender requirements.

How Refinancing to 15 Years Works

Refinancing your mortgage to a 15-year term typically involves taking out a new loan with a lower interest rate and shorter repayment period. The key benefits include:

Lower monthly payments due to the shorter loan term
Reduced total interest paid over the life of the loan
Potential tax benefits from interest deduction
Opportunity to pay off your home earlier

Monthly Payment Formula:

M = P [i(1 + i)ⁿ] / [(1 + i)ⁿ - 1]

Where:

M = Monthly payment
P = Principal loan amount
i = Monthly interest rate (annual rate / 12)
n = Number of payments (15 years × 12 = 180)

Example Calculation

Let's say you have a $200,000 mortgage with a 10% interest rate. Refinancing to a 15-year term at 5% would result in:

Original monthly payment: $1,429.55
New monthly payment: $1,201.36
Monthly savings: $228.19
Total interest saved: $29,736.80

This example shows how switching to a 15-year term can significantly reduce your monthly payment and total interest costs.

Frequently Asked Questions

Is refinancing to a 15-year term right for me?

Refinancing to a 15-year term can be beneficial if you want to pay off your mortgage faster and reduce your monthly payments. However, consider your financial situation, ability to make larger payments, and whether you plan to stay in the home long-term.

What are the closing costs for refinancing?

Closing costs typically range from 2% to 5% of your loan amount and may include appraisal fees, title insurance, and origination fees. These costs should be factored into your decision.

Can I refinance if I have bad credit?

Yes, but you may need to look for specialized lenders that offer loans for borrowers with less-than-perfect credit. Interest rates will likely be higher than for borrowers with excellent credit.