Should I Refinance?

Is your old APR (Annual Percentage Rate) too high? Estimate the benefits of refinancing using this calculator.
Loan 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 : (%)

Send to Email Address :
Name :
Phone # :

Financial Analysis (Switch to Plain English)
  Before Refinancing After Refinancing
Monthly Payment : $1,621.50 $1,125.00
Total Monthly Payments : $583,738.29 $404,998.36
Monthly Payment Savings : $178,739.93
Total Interest Paid : $78,552.98 $43,723.35
Tax Savings : $24,351.42 $13,554.24
Tax Saving Losses : $10,797.18
Balance at Refinance : $241,437.43
Points Value : $2,414.37
Refinance amount : $241,437.43
Balance at Sale : $222,700.69 $217,661.06
Balance Losses : $-5,039.63
Total Losses : $5,757.55
Total Closing Costs : $5,628.75
Total Savings : $178,739.93
Total Benefit
(Savings - Losses - Closing) : 		$167,353.63
Plain English Help (Switch to Financial Analysis)

Deciding whether or not you should refinance your home mortgage depends upon several factors. It also depends upon whether you are looking to simply reduce your monthly payment or if you are hoping to save money in the long run.

To understand better, let's look at an example. If your original 30 year loan was for $250,000.00 with a 6.750% interest, and you have already paid on it for 36 months, it will reduce your monthly payment if you refinance for a new 30 year period but with a 3.800% interest rate.

If your Federal tax rate is 26.000% and your state tax rate is 5.000%, you were probably paying $1,621.50 per month toward your home. When you refinance at the new rate, you will pay $1,125.00 instead, but your tax benefits will also be affected by this change.

The bottom line is:

  • you will lose $10,797.18 on tax savings (lesser tax benefit is worse)
  • your remaining balance will be $5,039.63 less because you will pay more toward your mortgage principal (lesser principal is better)
  • closing your refinancing process will cost you $5,628.75

Summing up these numbers, we can figure out your total refinancing BENEFIT, which will be $167,353.63.
DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or its applicability to your financial situation. Please consult your financial and/or tax advisor.