Mortgage Refinance Break Even

Cannot figure out when you will achieve the breakeven point for your mortgage refinance? The answer to this depends on a number of factors, such as your existing interest rate, the new interest rate which you will be offered, the closings costs and the time period until which you plan to reside in the same home. You can take help from this calculator and let it answer all your questions. The results will help you determine if mortgage refinancing is worth it or not in your individual specific scenario. You can view detailed results through the Report button.

Mortgage Refinance Break Even

Original Mortgage Balance

This is the total amount which you originally borrowed as mortgage.

Appraisal Value

This is the value which your home was worth when you bought it.

Mortgage Term

This is the total time period in which you have to pay off the mortgage.

Remaining Time Period

This is the number of years which are left for you to pay off the loan.

Tax Rate

This is the rate at which taxes are incurred on your income.

The Calculate Balance Checkbox

Mark this box if you want the calculator to estimate the amount which you have yet to pay off. This will be done on the basis of the total mortgage amount and the years which are left for you to pay off the loan. If you already know this amount, and want to provide it to the calculator for analysis, then do not check off this box.

Existing Appraisal Value

This is the value which your home is worth as of right now.

New Balance

This is the total amount that you have borrowed for the refinanced mortgage.

New Rate

This is the rate at which you have to pay an interest on the refinanced mortgage.

New Term

This is the total time period in years in which you will have to pay off your refinanced mortgage.

Rate of Loan Origination

This is the amount that you will have to pay to the lender in order to initiate the loan. Generally, this is about 1% of the amount which you have newly borrowed.

Closing Costs

These are the costs that you must pay at the time of closing. This includes expenses such as name, transfer fees, appraiser fees, filing fees and any other charges that have to be paid.

Existing Payment

This is the payment that you were paying. This includes the principal amount, interest amount and insurance. Taxes are not considered for this because they have no effect on your mortgage refinance.

New Payment

This is the payment that you will have to pay. This includes the principal amount, interest amount and insurance.

Breakeven Savings Time Period

This is the time in months in which your reductions in monthly payments will exceed your closing costs.

Breakeven Value for PMI

This is the time period in months in which the interest amount and your PMI savings will exceed the closings costs incurred.

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Blog May 21, 2013 admin No Comment(s)
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