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Should I Refinance?

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

 

Before Refinancing

After Refinancing

Amount
$
Interest Rate
%
%
Length
years
years
Months Paid
months
Years Before Sell
years

Fees and Points

Points
%
Origination Fees
%
Closing Costs
$

Your Taxes Rates

Tax Rate
%
State Tax Rate
%

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  Before Refinancing After Refinancing
Monthly Payment $1,342.05 $1,163.21
Total Monthly Payments $80,523.24 $69,792.40
Monthly Payment Savings $10,730.84
Total Interests Paid $54,306.57 $49,493.47
Tax Savings $16,835.04 $15,342.98
Tax Saving Losses $1,492.06
Balance at Refinance $229,571.83
Points Value $2,295.72
Refinance amount $229,571.83
Balance at Sale $203,355.16 $209,272.90
Balance Losses $5,917.74
Total Losses $7,409.80
Total Closing Costs $3,495.72
Total Savings $10,730.84
Total Benefit
(Savings - Losses - Closing)
$-174.68

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, letís look at an example. If your original 30 years loan was for $250,000.00 with a 5.000% interest, and you have already paid on it for 60 months, it will reduce your monthly payment if you refinance for a new 30 years period but with a 4.500% interest rate.

If your Federal tax rate is 26.000% and your state tax rate is 5.000%, you were probably paying $1,342.05 per month toward your home. When you refinance at the new rate, you will pay $1,163.21 instead, but your tax benefits will also be affected by this change.

The bottom line is:

  • you will lose $1,492.06 on tax savings (lesser tax benefit is worse)
  • your remaining balance will be $5,917.74 bigger because you will pay less toward your mortgage principal (bigger principal is worse)
  • closing your refinancing process will cost you $3,495.72

Summing up these numbers, we can figure out your total refinancing LOSSES, which will be $174.68.

DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.

We have many other Mortgage Calculators for you to use.

Make sure you register to receive my Free Homebuying Guide and Insider Mortgage Reports, browse my Resources section, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my North Palm Beach, Florida office at 561-316-6800. I am here to help you with all your mortgage needs.



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www.ChristianPenner.com 
www.AmericasMortgageSolutions.com
TheMortgageTeam@ChristianPenner.com

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The Christian Penner Mortgage Team,
712 US Highway One, Suite 300 North Palm Beach, FL 33408


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IS A LICENSED MORTGAGE BANKER-NYS DEPT OF FINANCIAL SERVICES.
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