Bank Statement Loan Refinance Calculator

Whether you’re looking to reduce your monthly payment, pay off high-interest debt, or reinvest in your business, our bank statement loan calculator is designed to help you assess if a bank statement refinance loan fits your financial goals.

Bank Statement Loan Refinance Calculator

What Is a Bank Statement Loan?

A bank statement loan is a type of non-qualified mortgage (non-QM) created for borrowers who may not meet traditional income verification requirements but can demonstrate consistent income through bank deposits. Instead of relying on W-2s or tax returns, lenders assess your income based on 12 or 24 months of bank statements (either personal or business) depending on your situation.

This type of loan is particularly beneficial for:

• Self-employed individuals
• Freelancers
• Contractors
• Business owners
• Commission-based workers

The key difference from a traditional mortgage is how income is verified. While a conventional loan looks at net income reported to the IRS, a bank statement loan focuses on your gross deposits—providing a more accurate picture for those who have significant write-offs or seasonal income.

Because of this flexibility, bank statement loans have become a popular alternative for self-employed borrowers who want to buy or refinance a home without jumping through the hoops of traditional lending guidelines.

Bank Statement Loan Refinance Programs

If you already have a bank statement loan, you don’t have to stick with the original terms forever. Many borrowers choose to refinance their bank statement loan to get:

• A lower interest rate
• A shorter or longer loan term
• A reduced monthly payment
• Access to cash-out equity

A bank statement cash-out refinance loan allows you to tap into your home’s equity — up to 80% of the property’s value — and receive funds that can be used for anything from home renovations to business investments. This type of refinancing is especially attractive to self-employed borrowers who want to avoid the complexity of traditional cash-out refinance approvals.

Griffin Funding offers specialized refinance options that are tailored for self-employed individuals, ensuring the process is smooth, fast, and fully aligned with your income structure.

Benefits of a Bank Statement Refinance Loan

Refinancing a bank statement loan comes with a range of advantages, especially for those navigating the mortgage world with non-traditional income. Here are some of the key benefits:

• Easier income verification: Instead of relying on tax returns, which often show reduced income due to business write-offs, lenders use your bank statements to verify income. You can choose to submit either 12 or 24 months of personal or business bank statements, depending on what best reflects your income pattern. This simplifies the underwriting process while still presenting an accurate picture of your financial health.
• Ideal for self-employed borrowers: Getting a mortgage when you’re self-employed can feel like an uphill battle. Traditional lenders may penalize you for fluctuating income, seasonal earnings, or business deductions. A bank statement refinance loan focuses on your gross deposits, making it much easier to qualify without needing to alter your business practices just to fit a lending mold.
• Potential for lower interest rates: Refinancing can help you lock in a more favorable interest rate, especially if your credit score, income, or market conditions have improved since you first secured your loan. A reduced rate can significantly lower your monthly mortgage payment and reduce the total interest paid over time.
• Lower monthly payments: Switching to a longer loan term or refinancing at a lower interest rate can help reduce your monthly mortgage payments. This creates extra breathing room in your monthly budget, allowing you to redirect funds toward savings, investments, or business expenses.
• Bank statement cash-out refinance option: Need funds for a renovation, emergency expense, or investment? A bank statement cash-out refinance loan allows you to borrow against up to 80% of your property’s value—based on your bank statement-qualified income—so you can put your home’s equity to work. This is a smart option for borrowers who don’t want to go through the hurdles of traditional cash-out refinancing.
• Flexible loan terms: Unlike many conventional refinancing options that box you into standard terms, bank statement refinance loans can be customized. Choose a loan length that aligns with your financial strategy, whether that’s paying off your mortgage faster or extending the term for a lower monthly payment.
• Tailored lending experience: At Griffin Funding, the process is tailored to meet your needs. Our team understands that no two self-employed borrowers are alike, and our programs are built with flexibility and responsiveness at their core. You’ll get personalized support from start to finish, ensuring a smoother and more efficient refinance process.

How the Bank Statement Loan Refinance Calculator Works

Refinancing doesn’t have to be a guessing game. The bank statement loan refinance calculator is a smart, intuitive tool designed to help self-employed borrowers understand the financial impact of refinancing their mortgage. By entering a few key data points, you can quickly estimate potential savings, projected payments, and qualification metrics, all without submitting paperwork or scheduling a call.

This calculator is especially helpful if you’re considering refinancing a bank statement loan you already have or if you’re exploring whether refinancing into one makes sense for your unique income situation.

What you’ll need to input:

• Number of bank statements: Choose whether you want to use 12 or 24 months of bank statements for income verification. The longer timeframe can offer a more stable average, while 12 months may be faster and more current.
• Loan type: Indicate whether your bank statements are from a business or personal account. Business accounts may show higher gross deposits, but both are acceptable depending on how you earn income.
• Monthly bank statement deposits ($): Input your average monthly deposits. This figure is used to estimate your qualified gross annual income.
• Existing mortgage balance: The total amount you still owe on your current mortgage.
• Current interest rate (%): Enter the rate you’re currently paying so the calculator can compare it to your potential new rate.
• Estimated property value: Your home’s current market value. This helps determine your loan-to-value (LTV) ratio, which is critical for refinancing eligibility and terms.
• Refinance loan term (years): Select the desired length of your new loan, such as 15, 20, or 30 years. This will influence your monthly payment and total savings.
• New interest rate (%): Enter the refinance rate you think you might qualify for—or test different scenarios to see how rate changes affect your monthly and long-term savings.

What you’ll see in the results:

• Qualified gross annual income ($): The calculator multiplies your average monthly deposits by 12 to 24 months, giving you an estimated annual income that lenders may use to qualify you for the refinance.
• Estimated LTV ratio (%): This percentage shows how much of your home’s value your new loan would cover. A lower LTV can lead to better rates and terms.
• Estimated monthly payment: Based on your inputs, this is the predicted monthly cost of your new mortgage.
• Monthly savings: See how much less you could be paying each month compared to your current mortgage.
• Total savings over loan term: Estimates how much money you’ll save over the full life of your refinance loan—factoring in interest and payments.

By adjusting the inputs, you can quickly compare different refinance scenarios and understand how much you might benefit by refinancing your bank statement loan. If you’re just getting started and want to assess your initial mortgage eligibility based on bank deposits, try using our bank statement loan calculator. It’s a great tool for borrowers still in the research phase who are exploring the broader benefits of bank statement-based lending before diving into refinancing.

See If a Bank Statement Refinance Loan Is Right for You

If you’re self-employed or have non-traditional income and want more control over your mortgage, a bank statement refinance loan might be your best next move. Whether you’re aiming to lower your payment, get better terms, or tap into your home’s equity, refinancing can offer real financial benefits.

At Griffin Funding, we specialize in working with self-employed individuals to make homeownership and refinancing more accessible. Our team understands your unique income structure and will guide you through every step of the process. With tools like our bank statement loan refinance calculator and the Griffin Gold app, you can explore your options and manage your mortgage journey with confidence and ease.

Get started online today!

Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 24 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in real estate finance. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc. 5000 fastest-growing companies list five times in its 12 years in business.