Money can be saved by using our mortgage refinance interest savings calculator. This calculator will productively find out a way to save your money by saving interest payments. Analyzing both the regular and refinanced mortgage you will be rewarded with concluding data.
Original mortgage balance
This is the value of the regular mortgage when entered into the contract.
The percentage amount charged annually on the original mortgage.
The number of years to pay back the original mortgage.
Number of payments made
Total number of periodic payments needed to pay off the original mortgage.
New mortgage balance
It’s the value of the new mortgage contract. This is the equivalent of the existing balance of the original mortgage. No cost from the previous (original) mortgage will be carried on to this new (refinanced) mortgage.
The percentage amount that will be charged annually on the new mortgage.
Total number of years for the new mortgage.
As said earlier that no cost from the previous mortgage will be carried on to the new mortgage, this is the total costs including fees and other charges of the new mortgage paid at closing point.
The mortgage loan was issued to you by the creditor with an intention to earn fixed income. As your prepayment is ending his chances of earning that determined income as per schedule, you are charged with penalties. This cost is also included in closing cost.
Break even point
This is the point where your earnings equal your costs. This cost includes the prepayment penalties and other cost of closing. If there is no cost of closing the original mortgage, no break even point will be there.