Refinance Calculator 2026 — Free Monthly Payment Estimate
Calculate your potential savings from refinancing your mortgage. Compare current vs. new rates, see your break-even point, and decide if refinancing is right for you.
Free Mortgage Calculator with Full PITI — Taxes, Insurance & PMI Included
TruePITI — See the Real Monthly Cost. Accurate payment estimates including principal, interest, taxes, insurance & PMI. No signup, calculations run entirely in your browser. Supports Conventional, FHA, VA, and USDA loans with full amortization schedule.
Loan Parameters
Government-backed, 3.5% down. MIP required for life of loan.
Current FHA Loan avg: 6.46%
Debt-to-Income (DTI) Calculator
Lenders use DTI ratio to determine how much you can borrow. Most loans require DTI below 36-43%.
Scenario Presets
Estimated Monthly Payment
Based on the national 30-year average of 6.71% (Freddie Mac PMMS, 09/03/2026). Your rate may vary.
Includes $131/mo PMI
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Amortization Schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | $3,383 | $21,034 | $311,617 |
| Year 2 | $3,617 | $20,800 | $308,000 |
| Year 3 | $3,867 | $20,549 | $304,133 |
| Year 4 | $4,135 | $20,282 | $299,998 |
| Year 5 | $4,421 | $19,996 | $295,577 |
| Year 6 | $4,727 | $19,690 | $290,850 |
| Year 7 | $5,054 | $19,362 | $285,796 |
| Year 8 | $5,404 | $19,013 | $280,392 |
| Year 9 | $5,778 | $18,639 | $274,614 |
| Year 10 | $6,178 | $18,239 | $268,436 |
| Year 11 | $6,605 | $17,811 | $261,831 |
| Year 12 | $7,062 | $17,354 | $254,769 |
| Year 13 | $7,551 | $16,866 | $247,218 |
| Year 14 | $8,074 | $16,343 | $239,144 |
| Year 15 | $8,632 | $15,784 | $230,512 |
| Year 16 | $9,230 | $15,187 | $221,283 |
| Year 17 | $9,868 | $14,548 | $211,414 |
| Year 18 | $10,551 | $13,865 | $200,863 |
| Year 19 | $11,281 | $13,135 | $189,581 |
| Year 20 | $12,062 | $12,354 | $177,519 |
| Year 21 | $12,897 | $11,520 | $164,622 |
| Year 22 | $13,789 | $10,627 | $150,833 |
| Year 23 | $14,744 | $9,673 | $136,089 |
| Year 24 | $15,764 | $8,653 | $120,325 |
| Year 25 | $16,855 | $7,562 | $103,471 |
| Year 26 | $18,021 | $6,395 | $85,449 |
| Year 27 | $19,268 | $5,148 | $66,181 |
| Year 28 | $20,602 | $3,815 | $45,579 |
| Year 29 | $22,027 | $2,389 | $23,552 |
| Year 30 | $23,552 | $865 | $0 |
Your estimated payment is $2,607/mo. Principal & interest is $2,035/mo, property tax $321/mo and insurance $120/mo.
PMI adds $131/mo (~$1,575/yr) because your down payment is under 20%. That’s roughly $3,150 over the next two years — money that stops once you reach 20% equity (request removal, or refinance when rates justify it).
Over 30 years you’ll pay $417,498 in interest — 57% of the total $732K lifetime cost. At today’s 6.71% rate that interest share is typical; it is why rate matters more than any other input.
Rate sensitivity: a +1 point move (to 7.71%) adds ~$213/mo (≈$76,782 over 30 yrs); a −1 point move (to 5.71%) saves ~$204/mo.
Next steps to consider
📖 Learn more about mortgage calculations▼
Frequently Asked Questions
How do you calculate my monthly mortgage payment?+
We use the standard amortization formula to calculate your principal and interest, then add property taxes, homeowner's insurance, PMI (if applicable), and HOA fees to give you the true monthly cost. Our calculator supports both fixed-rate and decreasing payment methods.
What loan types do you support?+
Our calculator supports Conventional, FHA, VA, and USDA loan types. Each has different requirements for down payment, mortgage insurance, and eligibility. We also have dedicated rate pages for FHA, VA, and USDA loans with detailed eligibility information.
Why does the 'decreasing' payment option show lower total cost?+
With decreasing payments (also known as equal principal payments), you pay a fixed amount toward principal each month plus interest on the remaining balance. Early payments are higher, but you pay much less total interest over the life of the loan compared to fixed payments.
What is PMI and how is it calculated?+
PMI (Private Mortgage Insurance) is required when your down payment is less than 20%. Our calculator automatically estimates PMI based on your loan-to-value (LTV) ratio. PMI typically ranges from 0.5% to 1.5% of the loan amount annually, and can be removed once you reach 20% equity.
Are your calculators accurate for FHA/VA/USDA loans?+
Yes. Our dedicated rate pages for FHA, VA, and USDA loans include specific calculations for MIP (FHA), funding fees (VA), and guarantee fees (USDA). We also factor in FHA loan limits and eligibility requirements.
Do I need to sign up or provide personal information?+
No. All our calculators work entirely in your browser. We collect no personal data, require no email, and make no phone calls. Your privacy is our priority.
Why Trust TruePITI?
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Includes taxes, insurance, PMI, HOA — the costs other calculators hide.
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Current Rates vs National Average
Source: Freddie Mac PMMS (09/03/2026). Rates change weekly; see /mortgage-rates for the latest.
Formula Reference: Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1] where P = principal, r = monthly interest rate, n = number of payments.
Rate data sourced from Freddie Mac Primary Mortgage Market Survey® (PMMS) and Federal Reserve Economic Data (FRED). All calculations follow CFPB standard mortgage formulas.
⚠️ Disclaimer
The calculations and information provided on this website are for informational purposes only and should not be considered financial advice. Actual mortgage rates, payments, and terms may vary. Always consult with a qualified mortgage professional or financial advisor before making financial decisions. We are not a mortgage broker or lender.
📘 How this calculator works▼
Free Mortgage Calculator: How Your Monthly Payment Is Calculated
Understanding how your mortgage payment is calculated is the first step to making smart home buying decisions. Our free mortgage calculator gives you the complete picture — not just principal and interest, but the real monthly cost including property taxes, homeowner's insurance, PMI, and HOA fees.
What Makes Our Mortgage Calculator Different?
Most calculators only show you the principal and interest payment. But your actual monthly payment — often called PITI (Principal, Interest, Taxes, Insurance) — includes much more. Our calculator factors in:
- Property taxes — Varies by county and state, typically 0.5%–2.5% of home value annually
- Homeowner's insurance — Usually $80–$200/month depending on location and coverage
- PMI (Private Mortgage Insurance) — Required if down payment is less than 20%, typically 0.5%–1.5% of loan amount annually
- MIP (Mortgage Insurance Premium) — Required for FHA loans, upfront and annual premiums
- VA funding fee — One-time fee for VA loans, varies by down payment and service type
- USDA guarantee fee — Upfront and annual fees for USDA loans
Mortgage Calculator for Different Loan Types
Each loan type has different requirements and costs. Use our calculator to compare:
- Conventional mortgage calculator — 3% minimum down, PMI required under 20% down
- FHA loan calculator — 3.5% minimum down, MIP required for life of loan
- VA loan calculator — 0% down for eligible veterans, no PMI, funding fee applies
- USDA loan calculator — 0% down for rural properties, income limits apply
Fixed vs Decreasing Mortgage Payments
Our calculator supports both fixed-rate P&I payments (same amount every month) and decreasing payments (equal principal plus declining interest). Fixed payments are easier to budget, while decreasing payments save on total interest over the life of the loan.
How to Reduce Your Monthly Mortgage Payment
- Make a larger down payment (20%+ to eliminate PMI)
- Shop for lower mortgage rates — even 0.25% lower can save thousands
- Refinance when rates drop
- Make extra payments to reduce principal faster
- Appeal your property tax assessment if it's too high
- Shop for cheaper homeowner's insurance
Try our free mortgage calculator now to see your true monthly payment. No signup, no email, no phone calls — just accurate instant results.
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Methodology & Assumptions
How this calculator works, what it assumes, and where it falls short. Every calculator on TruePITI documents its math.
Formula
- Break-even months = total closing costs ÷ monthly savings. New payment uses the standard amortization formula: P = L·r(1+r)ⁿ / ((1+r)ⁿ−1), r = annual rate ÷ 12, n = months.
Assumptions
- Closing costs default to 2-3% of loan amount (user-editable); actual costs vary by lender and state.
- Assumes a rate-and-term refinance at the same loan amount unless cash-out is specified.
- Term resets to the full new term (30-year refi restarts the clock).
Limitations
- Does not model the cost of extending the term — a 25-year-old loan refi'd to 30 years adds interest even at a lower rate.
- Does not include appraisal, title, or escrow timing costs in the break-even math beyond the closing-cost estimate.
- Assumes the new rate is locked and closing occurs within 45 days.
Worked Example
- $5,000 closing costs ÷ $75/mo savings = 67 months to break even (5.5 years).
Sources
- Freddie Mac PMMS 2026-08: 30-year fixed 6.625%
Refinance Calculator FAQ
When does refinancing make sense in 2026?+
Refinancing makes sense when you can lower your interest rate by at least 0.75-1%, reduce your monthly payment, switch from an adjustable-rate to a fixed-rate mortgage, or access home equity through a cash-out refinance. The key metric is the break-even point — divide your closing costs by monthly savings. If you plan to stay in the home longer than the break-even period, refinancing is financially worthwhile.
What are typical closing costs for refinancing in 2026?+
Refinance closing costs typically range from 2% to 5% of your loan amount. On a $300,000 loan, expect $6,000 to $15,000 in costs including appraisal fees ($400-600), origination fees (0-1% of loan), title insurance ($500-1,000), credit report fees ($30-50), recording fees ($100-300), and prepaid interest. Many lenders offer "no-closing-cost" refinances by rolling fees into the rate or loan amount.
How does refinancing affect my credit score?+
A refinance application triggers a hard credit inquiry, which typically lowers your score by 5-10 points temporarily. The new loan also replaces your old one, which can shorten your average account age — another minor, temporary dip. However, if your refinance lowers your monthly payment and you make on-time payments, your credit score can improve over time as your credit utilization and payment history benefit.
What is a cash-out refinance and how does it work?+
A cash-out refinance replaces your existing mortgage with a new, larger loan — you keep the difference as cash. For example, if you owe $200,000 and your home is worth $400,000, you could refinance for $300,000 and receive $100,000 in cash (minus closing costs). Cash-out refinances typically require maintaining 20% equity in the home and are popular for home improvements, debt consolidation, or major expenses.
Can I refinance with bad credit or no equity?+
Yes, options exist for borrowers with less-than-perfect credit or limited equity. FHA Streamline Refinances require no credit check or appraisal if you already have an FHA loan. VA Interest Rate Reduction Refinance Loans (IRRRL) also have minimal requirements. USDA Streamline Assist requires no appraisal or credit review. For conventional loans, a credit score of 620+ is typically needed. If you have less than 20% equity, you may need to pay PMI on the new loan.