# Refinance Breakeven (Australian)

Want an estimate of the average time that you require in order to breakeven on your mortgage refinance? The answer to this depends on a number of factors, such as your existing interest rate, your new interest rate, the closing costs incurred and the time period till which you will be residing in your house. This calculator considers all these factors and helps you decide if refinancing your mortgage is worth it or not. A completely detailed analysis can also be viewed in the report.

## Refinance Breakeven (Australian)

June 6, 2013admin1188 Views

## Initial Mortgage Amount

This is the initial or original amount which you borrow as mortgage.

## Home Appraisal Value

This is the worth of your house at the time of purchasing.

## Existing Term

This is the time period in which you have to pay off the amount for your existing mortgage.

## Remaining Time Period

This is the time period left for your existing mortgage.

## The Calculate Balance Checkbox

You can tick off this box if you want the calculator to estimate your balance amount. This is done by considering the loan information which you provide and the number of years that are left. You can also enter a balance amount on your own, but in this case, do not check the box.

## Current Home Appraisal Value

This is the current worth of your house.

## Loan Balance

This is the refinanced amount for your new mortgage. In actual, this is usually the outstanding balance of your existing mortgage.

## New Interest Rate

This is the rate at which interest will be generated on your new mortgage.

## New Term

This is the term for your new mortgage.

## Loan Fee

This is expressed as a percentage of the newly borrowed mortgage amount and has to be given to the lender in order to get the loan originated. Generally, the value of this parameter is 1% of the total amount.

## Closing Costs

This is the total amount that you will have to pay in order to close down your existing mortgage. This includes all expenses like appraiser fees, filing fees and so on.

## Existing Payments

This is the existing payment that you make every month in order to pay off the mortgage. It is expressed as a sum of the principal amount, interest and insurance amount. Please note that refinancing has no effect on your taxes or insurance, so they need not be included here.

## New Periodic Payment

This is the amount that you will have to pay in every period in order to pay off your new mortgage.

## Breakeven for Monthly Payments

This is an estimated time period in months in which your monthly payments reduction will become greater than the closing costs that are incurred for the existing mortgage.

## Breakeven Total After Taxes

This is an estimated time period in months in which your interest after taxes and insurance amount will become greater than the closing costs that are incurred for the existing mortgage.

## Breakeven for Savings and Prepayments

This is an estimated time period in months in which your interest, after including the effect of taxes and insurance amounts, will become greater than both the closing costs and the savings that resulted from prepayments.

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