| Original
mortgage amount |
Original
amount of your mortgage. |
| Appraised
value |
The
appraised value of your home when you purchased it. |
| Current
term in years |
Total
length of your current mortgage in years. |
| Years
remaining |
Number
of years remaining on your current mortgage. |
| Income
tax rate |
Your
current income tax rate. |
| Calculate
balance |
To
let the calculator determine your remaining balance, based on your
original loan information and years remaining, check this box. To
enter your own amount, leave this box unchecked. |
| Current
appraised value |
The
current appraised value of your home. |
| Loan
balance |
Balance
of your mortgage that will be refinanced. |
| New
interest rate |
The
annual interest rate for the new loan. |
| New
term in years |
Number
of years for your new loan. |
| Loan
origination rate |
This
is the percentage of the new mortgage that is paid to the lender
as the loan origination fee. Typically this fee is 1% of the loan
balance. |
| Other
closing costs |
Estimate
of all other closing costs for this loan. This should include filing
fees, appraiser fees and any other miscellaneous fees paid. |
| Points
paid |
This
is the number of points paid to the lender to reduce the interest
rate on the mortgage. Each point costs 1% of the new loan amount.
|
| Current
payment |
Your
current payment is the sum of principal, interest and PMI. Because
refinancing does not affect your insurance or taxes, they are not
included here. |
| New
payment |
Your
new payment is the sum of principal, interest and PMI. |
| Monthly
PMI payment |
Monthly
cost of Principal Mortgage Insurance (PMI). For loans secured with
less than 20% down, PMI is estimated at 0.5% of your loan balance
each year. Monthly PMI is calculated by multiplying your starting
loan balance by this percent and dividing by 12. When your loan
balance exceeds 20% of the original purchase price, your PMI payment
drops to zero. |
| Monthly
PI payment |
Monthly
principal and interest payment. |
| Break-even
monthly payment savings |
The
number of months it will take for your monthly payment reduction
to be greater than your closing costs. |
| Break-even
PMI & interest savings |
The
number of months it will take for your interest and PMI savings
to exceed your and closing costs. |
| Break-even
total savings after tax |
The
number of months it will take for your after-tax interest and PMI
savings to exceed your closing costs. |
| Break-even
total savings vs. prepayment |
This
is the most conservative break-even measure. It is the number of
months it will take for your after-tax interest and PMI savings
to exceed both your closing costs and any interest savings from
prepaying your mortgage. The prepayment amount used in this calculation
is the amount that you would have to spend on closing costs. |
