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Should I Refinance?

Knowing whether you should refinance or not takes more than a guess. Quite a few variables come into play. You need to consider whether refinancing will save you enough money to make it worthwhile. Fortunately, this calculator can assist you with the decision making process.

You will enter several important pieces of information into the calculator, so be sure that you have the information handy, including closing costs, tax rates, points, length of loans, and interest rates. You can even enter different values, on separate occasions, to compare the different options you have for interest rates, points, and terms.

To save on the amount of interest that you are currently paying, you need to refinance with a loan that has a lower interest rate and, quite possibly, a shorter term. Just because you are refinancing, it doesn't necessarily follow that you will save money.

What are the typical reasons that someone refinances in the first place? Probably the main reason that someone refinances is to acquire a lower interest rate. Another important reason would be to shorten the term. Finally, a third popular reason to refinance an existing loan would be to consolidate debt.

Input Information
  Before Refinancing After Refinancing
Amount : ($)
Interest Rate : (%) (%)
Length : (Yrs) (Yrs)
Months Paid : (Mts)
Years Before Sell : (Yrs)
Fees and Points
Points : (%)
Origination Fees : (%)
Closing Costs : ($)
Your Taxes Rates
Tax Rate : (%)
State Tax Rate : (%)
 Let Me Print That Form in PDF!

Financial Analysis
  Before Refinancing After Refinancing
Monthly Payment : $1,342.05 $1,163.21
Total Monthly Payments : $80,523.24 $69,792.40
Monthly Payment Savings : $10,730.84
Total Interests Paid : $54,306.57 $49,493.47
Tax Savings : $16,835.04 $15,342.98
Tax Saving Losses : $1,492.06
Balance at Refinance : $229,571.83
Points Value : $2,295.72
Refinance amount : $229,571.83
Balance at Sale : $203,355.16 $209,272.90
Balance Losses : $5,917.74
Total Losses : $7,409.80
Total Closing Costs : $3,495.72
Total Savings : $10,730.84
Total Benefit
(Savings - Losses - Closing) : 		$-174.68
Calculator Legend
  • Amount: Enter the amount of money that is being borrowed. This includes any additional fees that will be included in the loan amount.
  • Interest Rate: Enter the rate of interest that is being charged with the current loan under the before refinancing column. Enter the rate of interest that is being charged with the new loan under the after refinancing column. Enter both as percentages.
  • Length: Enter the number of years for the current loan under the before refinancing column. Enter the number of years for the new loan under the after refinancing column.
  • Months Paid: Enter the total number of months that have been paid on the mortgage loan already.
  • Years Before Sell: Enter the number of years that remain before you will sell the home.
  • Points: Enter the number of points that you will pay to acquire the loan.
  • Origination Fees: Enter the origination fee, or the amount that the lender is charging you for the processing of the loan.
  • Closing Costs: Enter the total amount of all costs charged at the closing or settlement.
  • Tax Rate: Enter the percentage for the tax bracket that you fall into for federal taxes.
  • State Tax Rate: Enter the percentage for your state tax.


DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.
 
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