Utah Refinance Calculator

How this calculator works

Your current payment is figured from your balance, rate, and years left. The new payment uses the new rate and term, plus any cash out or closing costs you add to the loan.

Net savings is the honest number. It counts the payments you save, subtracts what you pay to refinance, and adjusts for any difference in what you still owe. A shorter term can raise your payment and still come out far ahead, and this measure shows that.

When refinancing makes sense: the 0.75 rule

A refinance has upfront costs, so a tiny rate drop rarely pays off. A good rule of thumb: start looking seriously when market rates are about 0.75 points below your current rate and you plan to stay in the home at least a few more years.

Example: on a $450,000 balance, dropping from 7.50% to 6.75% on a new 30-year loan lowers the payment by about $228 a month. With $9,000 in closing costs, you break even in roughly 40 months. Everything after that is savings.

What refinancing costs

Most refinances cost 2% to 3% of the loan amount. Common line items include:

• Lender fees: origination, underwriting, and processing
• Appraisal (sometimes waived)
• Title insurance and title or escrow fees
• Credit report and flood certification
• County recording fees
• Prepaid interest and a new escrow account for taxes and insurance
• Discount points, if you choose to buy down the rate

Prepaids and escrow aren't true costs; you'd pay those taxes and insurance anyway, and your old escrow balance is refunded. Ask for a Loan Estimate so you can compare real numbers.

Good reasons to refinance

• Lower your rate and payment. The most common reason, and the one this calculator measures.
• Remove mortgage insurance. Rising Utah County home values may give you enough equity to drop PMI or FHA insurance.
• Pay off your home sooner. A 15- or 20-year term can save a large amount of interest.
• Leave an adjustable rate. Lock in a fixed payment before an ARM resets.
• Use your equity. Fund a remodel, basement finish, or ADU, or pay off higher-interest debt.

Why work with a mortgage broker

A bank can only offer its own loans. As a licensed mortgage broker, I compare rates, fees, and programs from multiple wholesale lenders and bring you the best fit. And because I'm also a Utah real estate agent, I understand your home's value and your local market.

Refinance questions

How soon can I refinance after buying?

Many conventional loans can be refinanced right away, though some lenders and loan types have waiting periods. If rates have dropped since you bought, it's worth running the numbers.

Does refinancing restart my loan?

It starts a new loan, but you choose the term. If you have 27 years left, a shorter term can keep your payoff date on track. Set "New term" above to compare.

Will refinancing hurt my credit?

A credit check can cause a small, temporary dip. Multiple mortgage checks within a short shopping window are generally treated as one inquiry.

Should I roll closing costs into the loan?

It saves cash today but adds to your balance and the interest you pay. Check the box above to see how it changes your break-even and net savings.

What if rates aren't low enough yet?

Join the free Rate Watch above. Once I know your rate, I'll let you know when refinancing makes sense for you.