Mortgage Refinance Break Even Tool
Use this mortgage refinance calculator to get a good estimate on your break even point when researching if you should refinance your loan. The detailed reports will graphically explain the breakeven in closing costs, contrast between savings from refinancing and savings from prepayment. This calculator is only a tool and should only be used to get a general analysis. For a more accurate refinance breakeven analysis call us today at Low VA Rates. Call us now at 855-223-0705. If you are a veteran and have a VA home loan make sure to ask about the VA streamline loan.
Mortgage Terms & Definitions
Below are some mortgage terms used with this calculator.
- Original mortgage amount
- Value of the existing mortgage finance.
- Appraised value
- Value of the home as appraised by the lender during the home purchase.
- Current interest rate
- Rate of interest charged yearly on the original mortgage.
- Current term in years
- Term length of the original mortgage.
- Years remaining
- Remaining term length on the original mortgage.
- Income tax rate
- Rate of tax expense on your current income. This rate varies based on your level of income.
- Current appraised value
- Current value of your home as appraised by the lender during the new mortgage.
- Loan balance
- Portion of the existing mortgage that will be refinanced.
- New interest rate
- Annual rate of interest on the new mortgage loan.
- New term in years
- Term length to repay the new mortgage loan.
- Loan origination rate
- Percentage rate charged on the new mortgage amount as the loan origination fees.
- Points paid
- Points can be purchased at the cost of 1% of the loan amount. If you have points purchased, enter the number of points you want to utilize on the new mortgage.
- Other closing costs
- Total of all other closing costs like appraiser fees, filing fees etc.
- Monthly PMI payment
- Monthly amount to be paid on principal mortgage insurance. PMI costs will start from 0.5% of the loan balance if your equity contribution is less than 20%. Check this box if your contribution to the home financing is equals to or above 20% of the home value.
- Current payment
- Your current payment is the sum of principal, interest and PMI (Principal Mortgage Insurance). Because refinancing does not affect your insurance or taxes, they are not included here.