refinance calculator 20 year fixed: a clear guide to costs and savings

How it works

A good calculator estimates a consistent monthly payment over 240 months by combining principal and interest on a fixed rate. Enter your remaining balance, current rate, new rate, closing costs, and any points. The tool then compares your old payment to the new one, flags the break-even period, and projects total interest paid so you can see long-run tradeoffs.

Why a 20-year term

This term pays the home off faster than 30 years yet keeps payments gentler than 15. If rates drop or you want to shed PMI, a 20-year refi can shrink interest while preserving budget flexibility. Use the results to decide whether to roll fees into the loan or pay them upfront.

What to compare

• Payment change: monthly difference and cash flow impact.
• Break-even: months to recover closing costs.
• Total interest: lifetime savings versus staying put.
• Amortization speed: effect of extra principal.
• Risk checks: prepayment penalties and cash-out needs.

For accuracy, input taxes, insurance, and HOA only if both scenarios include them, and verify lender quotes before locking.