How much interest can you save if you refinance your mortgage? The Should I Refinance Calculator helps you find out. Enter the specifics about your current mortgage, along with your current appraised value, new loan term, rate and closing costs. The calculator will determine how much interest refinancing can save you and if you should refinance your mortgage. In addition, it will calculate the number of months to break even on closing costs with your reduced monthly payment.
Should I Refinance Calculator
Should I Refinance Calculator Definitions
- Appraised home value
- Current market value of your home.
- Annual property taxes
- Your annual property taxes.
- Annual home insurance
- Your annual homeowner's insurance premium.
- Original loan amount
- Total amount for your original mortgage.
- Original rate
- Annual percentage rate of your original mortgage.
- Original term in years
- The total number of years for your original mortgage.
- Monthly PMI
- Monthly cost of Private Mortgage Insurance (PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year but can be higher or lower depending on the loan and your credit score.
- Number of payments made
- The total number of payments you have made on your original mortgage.
- New rate
- Annual percentage rate of your new mortgage.
- New term
- The total number of years for your new mortgage.
- New mortgage balance
- Total amount for your new refinanced mortgage. This amount is equal to your current balance on your original mortgage. Closing costs and prepayment penalties are assumed to be payable at the time of closing. Closing costs are not added to your new mortgage balance.
- Closing costs
- Total fees and other costs associated with the new mortgage and paid at the time of closing. This calculator assumes that all closing costs are paid with proceeds other than the new mortgage (closing costs are not added to the total for your new mortgage amount).
- New loan-to-value
- Total loan amount divided by the appraised value of your home.