Cost to Refinance a $200,000 Loan? Estimate It

This calculator estimates the monthly principal-and-interest payment and total interest for a $200,000 loan using the APR and term you enter; it does not calculate refinance closing costs. Enter the proposed loan amount, annual APR, and term to see those payment estimates, then use the cost guide below to account for lender and transaction charges.

Formula

The calculator uses the standard level-payment loan formula. It first finds the monthly payment, rounded to the nearest cent:

Payment = round(P × r / (1 − (1 + r)−n), 2)

Here, P is the loan principal in dollars, r is the monthly interest rate as a decimal (APR ÷ 1,200), and n is the number of monthly payments (years × 12). Estimated total interest is payment × n − P, using the rounded monthly payment.

Worked Example

With the calculator’s default inputs—$200,000, 6.5% APR, and 30 years—the monthly rate is 6.5 ÷ 1,200 = 0.0054167, and the term is 30 × 12 = 360 payments.

1. Monthly payment before rounding: $200,000 × 0.0054167 ÷ [1 − (1.0054167)⁻³⁶⁰] ≈ $1,264.14.
2. Monthly payment rounded to cents: $1,264.14.
3. Total interest: $1,264.14 × 360 − $200,000 = $255,090.40.

This example describes the new loan’s scheduled principal-and-interest payments, not the amount a borrower will pay to complete a refinance. Actual terms and costs must come from the lender’s figures.

Assumptions

• The interest rate is fixed for the full term.
• Payments are made monthly, with the first payment one month after the loan starts.
• Interest compounds monthly at APR ÷ 12.
• The estimate excludes refinance fees, taxes, insurance, mortgage insurance, and escrow.

What Refinancing a $200,000 Loan Can Cost

There is no single refinance-cost figure determined by a $200,000 balance. The amount depends on the property or asset, loan type, location, lender charges, and which services are required. The calculator above estimates payments and interest only; it cannot produce a reliable closing-cost total without those itemized charges.

For a mortgage refinance, a written estimate may include charges for items such as loan origination or underwriting, an appraisal or other property valuation, credit or title services, recording, and prepaid items. Which charges apply—and their dollar amounts—vary. A refinance can also require paying off the existing loan, so the payoff balance may differ from the balance shown on a recent statement because of accrued interest or other adjustments.

As a purely illustrative calculation, if a lender’s documented fees and required transaction costs add up to $4,000, then $4,000 is the estimated upfront cost before any credits, prepaid items, or other adjustments. That example is not a standard fee amount or a quote. Replace it with the actual itemized figures for the transaction. If costs are added to the new loan, the amount borrowed could exceed $200,000, changing the payment and interest estimates.

How to Estimate the Full Refinance Cost

Separate the transaction’s costs from the new loan’s ongoing payments. Gather the payoff amount for the existing loan and an itemized estimate for the proposed refinance. Then identify which charges are paid at closing, financed into the loan, or offset by credits. Prepaid expenses and escrow deposits may affect cash due at closing without being lender fees in the same sense as origination or service charges.

• Cash due at closing: The amount to bring or transfer at closing, after credits and any costs financed into the loan.
• Financed costs: Charges added to principal. These increase the balance on which interest is calculated.
• Payoff difference: Compare the existing loan’s official payoff figure with its statement balance; request a current payoff quote rather than assuming they match.
• Recurring payment: Compare principal and interest separately from taxes, insurance, mortgage insurance, and escrow, which may be collected with a housing payment but are not included in this calculator.

Check whether a quoted “cost” includes prepaid items and escrow, and whether it reflects credits. Comparing itemized categories helps prevent adding an amount twice—for example, counting a charge separately after it has already been rolled into the proposed principal.

Reading the Payment and Interest Estimates

The monthly payment shown is not the full housing payment. It covers principal and interest under the entered assumptions. A longer term generally spreads repayment over more months, which can lower the scheduled payment while increasing the amount of interest paid over the full term, all else equal. The total-interest output assumes every scheduled payment is made and the loan runs to the end of its term.

For an apples-to-apples comparison, enter the proposed refinance amount, APR, and term—not automatically the original loan amount. Include financed costs in the principal if the lender’s proposal adds them to the balance. If the actual APR or term differs, update the inputs. The displayed APR is an input, not a prediction; obtain the proposed figure and the lender’s official payment and cost disclosures.

Common Cost Questions and Limits

A lower monthly payment does not by itself show whether a refinance reduces overall cost. The new loan may have a different term, principal, and fee structure, so a payment-only comparison leaves out important information. This calculator also does not compute a break-even period: that would require verified upfront costs and an appropriate measure of monthly savings, alongside consideration of how long the loan is expected to remain in place.

Rounding matters. Payments are rounded to cents before total interest is calculated, so a result can differ slightly from a calculation that uses unrounded payments throughout. The formula also assumes a constant rate and equal monthly payments; it does not model adjustable rates, irregular payment dates, late charges, or a lender’s specific servicing calculations. Use the lender’s disclosure for transaction-specific totals.

Frequently Asked Questions

How much does it cost to refinance a $200,000 mortgage?
There is no fixed amount based only on the loan balance. Costs depend on the transaction and its itemized lender, service, and prepaid charges. Request a written estimate and check what is paid upfront, financed, or covered by credits.

Does this calculator include refinance closing costs?
No. It estimates monthly principal and interest and total interest from the amount, APR, and term. It does not have an input for closing costs, taxes, insurance, escrow, or lender credits.

Can I roll refinance costs into the new loan?
Some proposals may show costs financed into the new balance, but the available arrangement depends on the actual offer. If costs are added, use the resulting principal—not $200,000 alone—to estimate the payment.

Why is my payoff amount different from my loan balance?
A statement balance and a payoff quote are different figures at different dates. The payoff amount can account for interest accrued through a specified date and other transaction adjustments. Ask the current loan servicer for the official payoff figure.

Does a lower monthly payment mean the refinance costs less?
Not necessarily. A longer repayment term can reduce the scheduled payment while increasing total interest, and fees may add to the amount borrowed or cash due. Compare the proposed loan’s full terms and itemized costs rather than relying on payment alone.

This result is an estimate; the lender’s disclosure gives the exact figures.

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in p | Loan amount | $ | 200000 | 1 | 100000000
in apr | Interest rate (APR) | % | 6.5 | 0.01 | 100
in yrs | Loan term | years | 30 | 0.0833 | 50
out pmt | Monthly payment | $ | round(p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)), 2) | 2
out int | Total interest | $ | pmt * yrs * 12 - p | 2