Breakeven is the point of zero profit and zero loss. It’s so vital to reach this breakeven point at the shortest possible time. This calculator is specially designed to find out the time over which you will be able to reach the breakeven point on a mortgage refinance. This will help you to decide on whether to refinance mortgage or not. The detailed reports will graphically explain the breakeven in closing costs, contrast between savings from refinancing and savings from prepayment, compare the loan schedule, and breakdown the monthly payments.
Original mortgage amount
Value of the existing mortgage finance.
Value of the home as appraised by the lender during the home purchase.
Current interest rate
Rate of interest charged yearly on the original mortgage.
Current term in years
Term length of the original mortgage.
Remaining term length on the original mortgage.
Income tax rate
Rate of tax expense on your current income. This rate varies based on your level of income.
Current appraised value
Current value of your home as appraised by the lender during the new mortgage.
Portion of the existing mortgage that will be refinanced.
New interest rate
Annual rate of interest on the new mortgage loan.
New term in years
Term length to repay the new mortgage loan.
Loan origination rate
Percentage rate charged on the new mortgage amount as the loan origination fees.
Points can be purchased at the cost of 1% of the loan amount. If you have points purchased, enter the number of points you want to utilize on the new mortgage.
Other closing costs
Total of all other closing costs like appraiser fees, filing fees etc.
Monthly PMI payment
Monthly amount to be paid on principal mortgage insurance. PMI costs will start from 0.5% of the loan balance if your equity contribution is less than 20%. Check this box if your contribution to the home financing is equals to or above 20% of the home value.
Your current payment is the sum of principal, interest and PMI (Principal Mortgage Insurance). Because refinancing does not affect your insurance or taxes, they are not included here.